Kajiado Governor Joseph Lenku has hired a company to stop the operations of Tata Chemicals Magadi Ltd over unpaid land rates of Sh14 billion.
“Tata Chemicals Magadi Ltd has not remitted its land rates for years, and they owe us Sh14 billion as of March 2023,” he said.
Lenku said the county has made tremendous efforts to collect land rates and the dispute has been a subject of court cases, even after the national government intervened through the Ministry of Petroleum.
On Tuesday, the company hired by the county government, Regional Business Connection from Nairobi, took over the firm’s railway station in Kajiado town and blocked the two major gates.
Regional Business Connection field operations manager James Ndwiga said they were acting for the county government after Tata Chemicals Magadi Ltd refused to honour their obligations in paying land rates.
In a letter handed over to Tata Chemicals Magadi Ltd, which the firm admitted receiving, Ndwiga said, “It is because of your company’s continued legal defiance that we hereby order the closure of your business premises in Magadi and at Kajiado railway station as from January 16, 2024.”
Ndwiga said the company is expected to close down its operations until they regularise payments with their client or an agreeable repayment plan for all outstanding payments is agreed upon.
“Be guided that our client shall station enforcement officers in all your premises within Kajiado county to ensure compliance with the order. We look forward to your cooperation to avoid unnecessary inconveniences,” the letter indicated.
Tata Chemicals Magadi Ltd managing director Subodh Srivastav termed the invasion “illegal and unfounded”.
Subodh said the county government shut down Tata Chemical's Kajiado trans-shipment facility, paralysing their company operation.
“Their county enforcement officers padlocked the main entrance before kicking out our workers. This has forced our cargo trains to stall,” Subodh said.
The county government’s tax collection campaign also targets the financially troubled East African Portland Cement Company and Jamii Bora Housing Project.
The county government is demanding Sh85 million from the cement manufacturer in land rates and more than Sh100 million from Jamii Bora.
In March last year, a Senate oversight committee queried the huge debt owed to the Kajiado government in land rates and royalties by Tata Chemicals Magadi Ltd.
The Senate’s Public Accounts and Investments Committee took Lenku to task over why the county has not collected the money from the multinational.
Committee members, led by chairman Ochillo Ayacko (Migori) and vice chairman Hargura Godana (Marsabit), expressed dismay at the continued non-remittance of land rates bills by Tata Chemicals Magadi Ltd.
The company near Lake Magadi is one of Africa's largest manufacturer of soda ash.
“We regrettably note the county government has been getting nothing yet the company is making huge profits from its commercial activities. This is a matter that must be addressed so that the people of Kajiado can benefit from their natural resources,” Godana said.
Taita Taveta Senator Johnes Mwaruma said the Tata Chemicals matter was a classic example of unfair treatment of communities living in mining areas.
He said such cases were rampant in his home county.
The senators were responding to the 2019-20 report by the Auditor General, which queried why Sh10.6 billion in land rates and royalties had not been collected.
The amount was indicated in the receivables outstanding accounts.
Turkana Senator Imana Malachy said the amount owed could go a long way in bridging the revenue gaps in the county to enhance services.