NAIROBI, Kenya, Sep 4 – Nairobi Senator Edwin Sifuna has warned that the government’s decision to shut down Tata Chemicals Magadi could undermine investor confidence and discourage companies from investing in Kenya.
Sifuna said how the government handles disputes with businesses is a critical consideration for investors deciding where to put their money.
His comments came a day after President William Ruto ordered Tata Chemicals to leave Kenya, accusing the company of failing to invest sufficiently in Kajiado despite operating at Lake Magadi for more than a century.
“When companies make decisions about where to put their investments, the dispute resolution regime in place is key because disputes arise all the time,” Sifuna said.
The senator criticized what he described as the “Mambo Matatu, pack and go” approach, arguing that allowing the President to simply order a company to shut down its operations could have wider consequences for the economy.
“The ‘Mambo Matatu, pack and go’ approach where the President can just shut down your business is very bad for investment and consequently, job creation,” he said.
According to the Nairobi Senator,the central issue is not whether the government should enforce regulations, but how such disputes are handled.
He argued that investors need assurance that disagreements will be resolved through established legal and regulatory mechanisms rather than through abrupt executive directives.
“It is why we in Linda Mwananchi insist on a return to the Rule of Law. That’s our Plan!” Sifuna said.
Sifuna’s remarks put the Tata Chemicals dispute at the centre of a wider debate over how Kenya balances its right to regulate businesses and protect national interests with the need to provide investors with certainty and predictable legal processes.
President Ruto on Thursday said he had directed Tata Chemicals to leave the country, accusing the company of exploiting resources at Lake Magadi without generating sufficient benefits for Kajiado residents.
Ruto said the government would bring in new investors and require them to establish industries in the county, including a glass manufacturing plant and a chemical processing facility.
“We have said we will bring a new company and they should put a big glass company here in Kajiado. And another company to make chemicals here in Kajiado,” Ruto said during his visit to the county.
The President questioned why Kenya should continue exporting raw materials when the country could process them locally and create jobs.
The directive followed a government suspension of Tata Chemicals Magadi’s mining operations on July 28. The Mining Ministry had cited several outstanding regulatory issues, including mineral beneficiation and value addition, royalty reconciliation, export reporting, community development agreements, employment and skills transfer, local procurement and environmental compliance.
Tata Chemicals has maintained that it has complied with the requirements set by the government. The company said in August that it had submitted all information, reports and documentation requested by the Ministry of Mining, Blue Economy and Maritime Affairs and was awaiting further direction.
The company has also said the prolonged suspension has created uncertainty for its employees, communities and business partners.
The Magadi operation is one of Kenya’s oldest large-scale industrial ventures and is a major producer and exporter of soda ash. The company says its operations support hundreds of employees and surrounding communities.
Ruto’s decision to seek a new investor has therefore raised questions about the implications of the government’s approach for other investors operating in the country.
The ODM secretary-general’s intervention comes as the opposition seeks to position the rule of law, accountability and protection of institutions as key issues ahead of the 2027 General Election.
Sifuna’s argument is that investor confidence is closely linked to the predictability of the business environment. If companies fear that their operations can be terminated without a clear and dependable dispute-resolution process, he suggested, they may reconsider committing capital to Kenya.
The Tata Chemicals dispute has consequently evolved beyond the future of the Magadi soda ash operation, becoming part of a broader political and economic debate over the government’s treatment of private investment.
While the government maintains that the changes are intended to ensure Kenyans benefit more from their natural resources, critics argue that enforcement must be accompanied by due process and respect for the legal protections available to investors.
Tata Chemicals, meanwhile, has said it remains committed to engaging with the Kenyan authorities to resolve the matter through regulatory dialogue.
