President William Ruto has confirmed that the government will re-advertise the Magadi mining contract, opening the multi-billion-shilling project to bids from multiple companies following the exit of Tata Chemicals Magadi.
Speaking in Kajiado County on Saturday, September 5, Ruto said the new agreements would require investors to undertake mineral processing locally, including setting up glass and chemical manufacturing plants in Kenya.
The President said the government could allow as many as 10 companies to apply for mining rights, arguing that Magadi’s mineral resources were extensive enough to sustain several investors.
“We are going to advertise afresh so that other companies, not one company, even up to ten companies, can apply because the resource we have in Magadi is big enough to sustain more than one company,” Ruto said.
He said the fresh contracts would also prioritise local value addition by ensuring minerals extracted in Magadi are processed within Kenya instead of being exported for processing and value addition elsewhere.
Ruto further announced plans to restrict the amount of land that mining companies can control, saying investors would no longer be allowed to occupy the entire 240,000 acres associated with the project.
Under the proposed arrangement, mining companies would only occupy between 20 and 30 per cent of the land, with the remainder being returned to local residents.
“We are going to ensure that no company will occupy 240,000 acres of Kajiado land. They are going to occupy just 20 to 30 per cent of the land, and 70 per cent will go back to residents of Kajiado,” Ruto said.
The President also defended his decision to terminate the previous mining agreement, arguing that it had disadvantaged local residents while allowing the area's mineral resources to be exploited for decades.
He described the previous arrangement as an 'exploitative contract' that had been in place for approximately 100 years, saying the agreement could not continue under the same terms.
Ruto also criticised those opposing his decision, arguing that the government would not uphold legal arrangements that he believes are detrimental to the interests of Kenyans.
“To the critics of my decision, do not tell us about the rule of law that sustains extractive and exploitative contracts that undermine the interests of Kenya and the people of Kajiado,” Ruto said.
His remarks come amid growing concerns among some Kajiado residents over the closure of Tata Chemicals Magadi and its potential economic and social consequences.
Residents have warned that the company's departure could lead to significant job losses, particularly among people who relied on its Magadi operations for employment.
Concerns have also been raised over community projects supported by the company, including three schools, with residents fearing that the closure could affect their operations and continued support.
Ruto's announcement came two days after he directed Tata Chemicals Magadi to leave Kenya, accusing the company of exploiting the country's mineral resources for more than a century without delivering sufficient benefits to local residents.
