Tata Chemicals Magadi Managing Director Subodh Srivastav on Wednesday said he is committed to upholding the laws governing their operations.
“We are actively engaged in discussions with the National Government to seek a mutually agreeable resolution regarding the attack on us by the Kajiado County government on Tuesday,” said Srivastav.
He said the county government debt collector lacks the authority to close any facility without a court order, particularly as the matter of rates is currently before the Court of Appeal awaiting determination.
"We acknowledge the communication received from Regional Business Connection, acting on behalf of the County Government of Kajiado, and have promptly addressed it, emphasising the legal concerns surrounding their proposed actions,” said the Tata Chemicals Magadi MD.
Srivastav said that Tata Chemicals Magadi significantly contributes between USD 6 to 8 million to the Kenyan economy every month.
“The potential closure of our company jeopardises its pivotal role in the country's development, impacting GDP and vital foreign exchange earnings from international markets,” he said
The MD said that the government stands to lose over Sh560 million in royalties to the Ministry of Mining and over Sh1.3 billion in taxes to the Kenya Revenue Authority.
Furthermore, he said, the move poses a severe threat to the well-being of their 490 employees and over 800 contractors and their families, as well as the Maa community, who derive substantial benefits from Tata Chemicals Magadi operations.
“It will also disrupt various community impact programs, including the operation of a 55-bed Level 4 hospital providing subsidised healthcare, the education of over 500 pupils at Magadi Primary School, and the provision of bursaries to needy students in the community,” he added.
Additionally, Srivastav said the action by the county will also impact negatively on the supply of water to the community and the Kenya Police College based in Magadi.
Governor Joseph Lenku on Tuesday said the company owes the county Sh14 billion in land rates and cannot wait any more.
“We are demanding what is ours and nothing less,” said Lenku.
He said he hired the Regional Business Connection to close down the operations of Tata Chemicals Magadi because they have refused to listen to their demands.
“It is a legal obligation for them to pay our land rates. We are not going to understand their deals with the national government. We want what is ours,” said Lenku.
Regional Business Connections has successfully closed down operations of the company in Kajiado town godown and is expected to move to Magadi town on Wednesday to close down the mining operations.
