Court Declines to Lift Suspension of Tata Chemicals Magadi Operations

The High Court has declined to lift the suspension of Tata Chemicals Magadi Limited’s mining operations. The suspension stems from a licensing and compliance dispute with the government.

The court noted that the decision imposed by Mining Cabinet Secretary Hassan Joho on 28 July 2026 had already taken effect when the company moved to court.

Implementation of the decision had begun in earnest. The parties had reached a consensus at a meeting on 29 July that the suspension would remain in force even as the company took steps toward compliance.

The suspension followed a dispute over alleged royalty obligations and compliance requirements. These covered licensing, export reporting, community agreements, local employment and environmental rules.

Tata Chemicals challenged the decision through judicial review. It argued the suspension was issued without proper notice or adequate time to respond.

The company disputed owing royalties and told the court that outstanding amounts had been settled. The government opposed the request for a temporary order.

An affidavit stated that several notices had been issued to the company, the most recent dated 14 May 2026, claiming arrears of accrued royalty payments.

The government also told the court that Tata Chemicals did not hold a current mining licence because its application was still being processed.

Kenya Gazette notices in February 2026 and October 2025 recorded the company’s applications for mining licences covering areas in Kajiado County for soda ash.

The parties met the day after the suspension letter. The government said they agreed operations would remain suspended while compliance steps were taken.

Tata Chemicals said the meeting did not resolve the legality of the suspension. It said discussions concerned royalty calculations.

In its ruling dated 7 August 2026, the court said it was not required at this stage to decide the merits of the wider dispute. The task was to balance the interests of both sides.

Tata had argued that continuing the suspension would cause huge losses. The court said the company had not shown the nature or extent of those losses.

The commodity at the centre of the mining operations had not been shown to be perishable. The interim prohibition order was therefore declined.

The case is expected to be called again on 6 October 2026. The company is also involved in a separate Supreme Court matter with Kajiado County Government over land rates and royalties.