Shares of India’s Tata Chemicals fell sharply on Friday after President William Ruto ordered the company to cease its operations in Kenya, escalating a dispute over the company’s long-running activities at Lake Magadi in Kajiado County.


Tata Chemicals’ shares dropped about 3%, reaching an intraday low of Rs 625 on the Bombay Stock Exchange (BSE) following the announcement.


President Ruto said the government had decided to remove Tata Chemicals Magadi and bring in two new companies to take over operations. He accused the company of operating in the area for more than a century without providing sufficient investment, jobs and local industrial development.


The dispute follows a July 28 government suspension of Tata Chemicals Magadi’s mining operations and a subsequent halt to soda ash exports. The company has maintained that it submitted the documents requested by the Kenyan government and complied with applicable regulatory requirements.


Tata Chemicals has now said it is awaiting further direction from Kenya’s Ministry of Mining, Blue Economy and Maritime Affairs while continuing to engage with the government through legal and regulatory channels.


The Magadi operation is significant to Kenya’s economy, with Tata Chemicals describing it as one of the country’s leading exporters and Africa’s largest soda ash manufacturer. The company’s operations also support employees, contractors, suppliers and surrounding communities.


The latest development has therefore raised questions about Kenya’s mineral-resource policies, foreign investment, local value addition and the future of employment around Lake Magadi.