Author: user user

The High Court has declined to hear a suit by Tata Chemicals Magadi Limited, which sought to challenge the government’s decision to suspend its mining operations, saying it should have been filed before the Environment and Land Court (ELC).

The court held that disputes relating to minerals and mining are closely linked to land use and the environment.

‘Minerals and mines are intertwined with land and environment. That would explain why the Mining Act is peppered with provisions on land, land use and the environment. That then ought to raise questions about jurisdiction, concerning which court would have jurisdiction to handle disputes relating to minerals and mining,’ the court said.

The judge added: ‘Clearly, the Environment and Land Court is the court with jurisdiction to hear disputes relating to mining in Kenya.’

The company had moved to court after the Ministry of Mining and Blue Economy wrote to it on July 28, 2026, directing it to suspend its mining operations over alleged non-compliance with statutory and regulatory requirements.

Tata Chemicals Magadi sought to quash the letter, arguing that the decision was unconstitutional, null and void, and violated its rights under the Constitution and the Mining Act.

The company contended that the suspension was imposed without prior notice or an opportunity to respond to the allegations, address the alleged deficiencies, or show cause why its operations should not be halted.

While acknowledging that the government has powers under the Mining Act to administer the law, including suspending or revoking mineral rights and licences, the company argued that such powers must be exercised in accordance with the law.

It further argued that the decision was disproportionate because it imposed an immediate and blanket suspension of all its mining operations, which it said was unrelated to the allegations contained in the ministry’s letter.

In response, Secretary of Mines in the State Department for Mining, Thomas Mutwiwa, said the government had engaged the company over several years regarding its statutory obligations.

He said the notice was issued to compel the company to comply with the law following several alleged violations, including non-payment of royalties and the accumulation of royalty arrears.

Mr Mutwiwa said the ministry had written several letters to the company over the outstanding issues, which were followed by visits from inspection teams.

He added that the local community had raised complaints against the company, accusing it of exploiting local mineral resources and degrading the environment without providing tangible economic benefits to residents.

The ministry also cited complaints relating to land rates and alleged non-compliance with local content requirements.

Mr Mutwiwa said the issues remained unresolved despite engagements with the company to address the complaints.

He told the court that a meeting was held on July 29, 2026, a day after the suspension notice was issued, during which the company committed to cooperate with the ministry by providing information and documentation.

The ministry further argued that the company had applied for a licence, which was still being processed.

Mutwiwa said Tata Chemicals Magadi did not hold a mining licence or any other mineral right granted under the Mining Act. He therefore maintained that the decision to halt its operations did not amount to the suspension of a mineral right.

Billionaire Narendra Raval has tightened his grip on Kenya’s construction sector with the launch of a Sh70 billion cement and clinker plant, underlining the scramble among tycoons for the key raw material.

Located in Ngaaie, Kitui County, the plant will produce three million tonnes of clinker annually, pushing Devki Group Group’s total capacity to 9.2 million tonnes.

Clinker, the main raw material used in making cement, is produced from limestone.

The expanded capacity is equivalent to 88.5 percent of Kenya’s installed capacity of 10.4 million tonnes, assuming Devki expands while other players make no additional investments.

The expansion, the latest in a series of major investments by Mr Raval, intensifies competition for control of Kenya’s cement industry among deep-pocketed regional investors, including Tanzania’s Edha Nahdi of Amsons Group, which owns Bamburi Cement, and Uganda-based Sarbjit Singh Rai of Sarrai Group, which operates Rai Cement.

The three tycoons are locked in a battle for a share of East Africa’s multi-billion-shilling cement industry, growing their empires across Kenya, Uganda, Tanzania and Rwanda.

Devki’s latest factory brings their combined cement investments across East Africa to at least Sh203 billion over the past three years, in an expansion spree driven by new plants and acquisitions. Presiding over the ground-breaking ceremony yesterday, President William Ruto praised the investment as a milestone in Kenya’s efforts to expand its industrial capacity, noting that such projects would create more jobs.

Dr Ruto also defended his administration’s decision to impose a controversial 17.5 percent Export and Investment Promotion Levy on imported clinker. The levy has sharply curtailed imports of the key cement-making input, raising concerns over competition because it favours those with their own clinker plants, particularly Devki Group’s National Cement.

‘By producing clinker locally, we retain more value within our economy, create skilled jobs, build technical expertise, strengthen our industrial capacity, and create wealth in Kenya,’ said Dr Ruto.

Mr Raval, popularly known as Guru because of his priestly background, publicly backed the levy during parliamentary deliberations on the Finance Bill 2023 and later defended the policy in court when rival cement manufacturers challenged it.

Cement makers, particularly smaller players, have complained of clinker shortages despite earlier government assurances that local supply would be sufficient when the levy was introduced via the Finance Act 2023.

Karsan, Rai Cement, Bamburi Cement, Savannah Cement and Riftcot were among firms that mounted a spirited fight against the levy, with some fearing it was intended to help Mr Raval dominate the lucrative clinker market.

Previously, most of these manufacturers had opposed a proposed increase in import duty on clinker, instead seeking a four-year grace period, running to 2026, to build their own production facilities for the key ingredient.

The government, however, insisted that the levy would remain, arguing that it was intended to spur local production and boost employment.

‘That is why, in 2023, we introduced the Export and Investment Promotion Levy on imported clinker to encourage domestic production. Our policy must give investors the confidence to build factories while ensuring that increased production delivers quality, competition, and affordable prices,’ Dr Ruto added.

In April 2024, Devki unveiled another clinker plant at Sebit in West Pokot, with a daily production capacity of 6,000 tonnes, equivalent to about 2.19 million tonnes annually at 365 days of operation.

Mr Raval, who is also a major player in the steel industry, has expanded across the cement value chain, from securing access to limestone deposits and developing clinker plants to investing in cement-grinding factories.

His investments include the Merrueshi clinker plant in Kajiado, the Sebit facility and cement factories in Nakuru and Mariakani at the Coast.

This broad presence across the value chain positions his group to benefit from rising cement demand amid a construction boom fuelled by infrastructure projects.

President Ruto said the Sh2.1 trillion Dangote refinery alone is expected to consume more than two million tonnes of cement during construction, equivalent to about a fifth of Kenya’s 10.44 million tonnes of cement production in 2025.

Demand will rise further when additional berths and related port infrastructure that Dangote plans to develop to support the refinery are factored in, the President said.

The planned expansion of Lamu port to more than double its current size will add to demand for construction materials. Dr Ruto reckoned that the combined requirements of these projects could approach twice Kenya’s current annual cement consumption.

‘This presents a significant opportunity to expand domestic clinker and cement production, strengthen our industrial base and create more jobs for our people,’ said Dr Ruto.

The construction boom under the current administration, which contributed to a 20.3 percent rise in cement use to 10.28 million tonnes in 2025, includes projects such as the affordable housing programme, the Rironi-Nakuru-Mau Summit Highway, Talanta Stadium, upgrade of Bomas of Kenya and the rehabilitation of roads across the country.

The extension of the Standard Gauge Railway (SGR) from Naivasha to Kisumu and eventually to Malaba on the Kenya-Uganda border will add to cement demand.