The High Court has declined to temporarily lift the suspension of operations at Tata Chemicals Magadi Limited, leaving the soda ash producer shut down as it battles the government over mining compliance, royalty payments and licensing.
Justice W. Musyoka rejected the company’s request for an interim order blocking the July 28, 2026 directive by the Cabinet Secretary for Mining, Blue Economy and Maritime Affairs that halted its operations.
Tata Chemicals Magadi had challenged the suspension, arguing that it was imposed without sufficient notice or an opportunity to respond. The company also disputed claims that it had outstanding royalty payments.
The government, however, told the court that Tata Chemicals Magadi had received several notices over alleged royalty arrears dating back to 2023, with the most recent issued on May 14, 2026.
The State further said discussions between the two sides had continued, including a July 29 meeting where they agreed that the suspension would remain in place while the company worked towards meeting the required compliance measures.
Tata Chemicals Magadi argued that keeping the plant closed would cause significant financial losses to the company as well as businesses and individuals whose livelihoods depend on its operations. It invoked the Fair Administrative Action Act and previous court rulings in seeking temporary relief.
The government opposed the application, arguing that the suspension had already taken effect and therefore could not be stayed. It also told the court that the company did not currently hold a valid mining licence, with its application for a new licence still under consideration.
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Justice Musyoka noted that the suspension directive had already been implemented by the time Tata Chemicals Magadi went to court on July 30. He also pointed to the agreement reached during the July 29 meeting for the shutdown to continue as the company pursued compliance.
The judge described the suspension as temporary rather than permanent and said the company had not sufficiently demonstrated the scale of the losses it claimed would result from the continued closure.
He also observed that there was no evidence that the soda ash involved in the dispute was a perishable commodity.
While the court acknowledged the government’s obligation to enforce the law, Justice Musyoka also noted that Tata Chemicals Magadi should not be subjected to an unlawful disruption of its operations if the government’s decision is ultimately overturned.
The legal dispute involves Tata Chemicals Magadi, the Cabinet Secretary for Mining, Blue Economy and Maritime Affairs, the Principal Secretary in the State Department of Mining and the Attorney General.
