In Kenya, President William Ruto said that the contract for soda ash mining in Magadi will be re-announced for competitive bidding. It concerns Tata Chemicals Magadi Limited, an Indian company that mines soda ash in the Magadi area and leases land there.
A tender instead of another operator
As Nation Kenya notes in an editorial, the president announced the tender after criticism from opposition politicians. Earlier, Ruto said that another company had already been selected to take over management of the enterprise, but later withdrew that statement.
The publication’s editorial board believes that competitive selection could open access to mining for other investors and end the Indian company’s monopoly position. At the same time, it stresses that decisions with important consequences for the local community and national interests should be made with public discussion.
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Land and investment
Ruto also announced plans to establish a glass and chemical products plant to create jobs in Kenya. According to him, 70% of the 24,000 acres of land leased by Tata Chemicals should be returned to the community.
The president’s critics accuse him of putting pressure on investors and intending to push them out of the country. Tata Chemicals says it has met regulatory requirements and expects a review by Kenya’s Ministry of Mining. Nation Kenya’s editorial board notes that the state must ensure that citizens benefit from natural resources without placing investors at a disadvantage, and that negotiations must be transparent.
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