President William Ruto has outlined a new plan for the Magadi resource, saying the government will open it to multiple investors and require local processing after ending the long-running arrangement with Tata Chemicals Magadi.
Speaking in Kajiado on Saturday, September 5, Ruto said the government will advertise the resource afresh, allowing more than one company to apply for the opportunity.
He said the size of the resource could support several investors, marking a shift from the existing arrangement that has been in place for about 100 years.
“The resource we have in Magadi is big enough to sustain more than one company,” Ruto said.
The President also said the new contract will require companies to undertake value addition in Kenya instead of exporting raw materials for processing abroad.
He said the government expects factories producing glass and chemicals to be established locally, creating jobs for Kenyans and allowing communities to benefit more directly from the resource.
“Value addition is going to be done here in Kenya,” Ruto said.
Ruto further announced plans to reduce the amount of land occupied by mining operations, saying a large portion of the 240,000 acres would be returned to local residents for other uses.
He said companies would occupy about 20 to 30 percent of the land, while the remaining 70 percent would be returned to the people of Kajiado County.
“No company will occupy 240,000 acres of Kajiado land,” he said.
The announcement follows Ruto’s earlier directive for Tata Chemicals Magadi to leave, amid his criticism of the company’s long-term exploitation of resources around Lake Magadi.
Ruto accused the existing arrangement of failing to generate enough investment and opportunities for residents despite operating for more than a century.
The President said the new approach would allow Kenya to retain more of the economic benefits from its natural resources through local manufacturing, employment and wider use of the land.
The planned transition, however, comes as an employment concern, with Tata Chemicals Magadi previously reporting more than 600 workers on its payroll. The government has yet to outline how existing employees will be affected by the change or whether they will be considered for jobs under new investors.