Shares of Tata Chemicals declined 3% to their day's low of Rs 625 on the BSE on Friday after Kenya President William Ruto said on Thursday that he had ordered the company to stop its operations in the country, stating that its presence had failed to benefit Kenya.
Ruto said the Kenyan government would bring in two new companies to take over Tata Chemicals’ operations. In late July, Tata Chemicals had said the Kenyan government ordered its unit, Tata Chemicals Magadi Limited, to suspend operations at the Magadi Soda factory and halted exports of soda ash.
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Tata Chemicals said on Thursday that it respects the authority of the Kenyan government and remains committed to “constructive engagement through the appropriate legal and regulatory channels to resolve the outstanding matters”. The company said its unit had provided a “comprehensive” response to the issues raised by the ministry, including details of its compliance with applicable regulatory requirements.
Ruto said Tata had held the contract for 100 years but had not built anything or established a factory in Kajiado. He said the government would bring in a new company to establish a large glass manufacturing facility in Kajiado and another company to manufacture chemicals there.
Tata Chemicals’ Kenya operations contributed around 6% of the company’s total EBITDA in FY26. Tata Chemicals Magadi has an annual soda ash production capacity of around 350,000 tonnes. Soda ash is used across industries such as glass manufacturing, chemicals and detergents.
Formerly known as Magadi Soda Company, Tata Chemicals Magadi has been part of Tata Chemicals since 2005. Tata Chemicals, part of the global Tata Group, is one of the world’s leading chemical companies, with a portfolio spanning household products, industrial chemicals and agricultural inputs. It is Africa’s largest soda ash manufacturer and one of Kenya’s leading exporters.
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Tata Chemicals, the world’s second-largest soda ash manufacturer, reported a consolidated net loss of Rs 17 crore for the first quarter ended June 30, 2026, compared with a net profit of Rs 252 crore in the corresponding period last year. The decline was primarily attributed to lower realisations, reduced other income and lower income from joint ventures.
Consolidated revenue from operations increased 14.4% year-on-year to Rs 4,255 crore from Rs 3,719 crore in the year-ago quarter, supported by higher volumes that offset lower realisations.
Consolidated EBITDA, however, fell 14.5% to Rs 555 crore during the quarter from Rs 649 crore in the same period last year. The decline was mainly due to lower realisations at overseas subsidiaries, particularly from exports from the US to Southeast Asian markets.
Tata Chemicals shares have fallen 15% so far in 2026, while the stock has lost more than 30% over the past year.
