Senate turns heat on Tata Chemicals over Sh10 billion land rates amid Kajiado’s financial struggles

The long-running land rates dispute between Kajiado County and Tata Chemicals Magadi Limited dominated a Senate watchdog session, with lawmakers demanding accountability over more than Sh10.5 billion owed by the multinational.

Senators also questioned why the county continues to post low revenues despite its vast potential.

The Senate County Public Accounts Committee, chaired by Homa Bay Senator Moses Kajwang’, revealed that Tata controls over 400,000 acres in Kajiado but has resisted paying the Sh1,200 per acre rate imposed under the Finance Act of 2016.

Though the company challenged the law in court and lost at both the High Court and in arbitration, it has since filed an appeal that is still pending.

Governor Joseph Ole Lenku told senators that the company’s conduct has denied residents their rightful benefits.

“Here is a big money mover that refuses to pay taxes. It occupies a whole ward, almost like a county in other regions. It is an injustice for one business to refuse to pay while ordinary residents pay Sh1,200 per acre,” he said.

He also accused Tata of holding on to almost all its 400,000 acres, leaving communities with only about 8,000 acres near Lake Magadi.

Nandi Senator Samson Cherargei branded the firm “rogue” and pushed for its executives, Governor Lenku, and Mining Cabinet Secretary Hassan Joho to be summoned.

Senators said they would also invite the National Treasury and the Ministry of Mining to explain why the arrears remain uncollected despite the company’s continued mining of soda ash.

“The Senate will invite the National Treasury, Ministry of Mining and Magadi Soda Mining Company to explain why the Sh10.5 billion land rates have not been paid. That money can transform Kajiado,” Kajwang’ declared.

Beyond the unpaid rates, senators also raised alarm over a sharp fall in the county’s internally generated revenues. Committee documents showed cess revenue fell by Sh6 million, advertising income by Sh13 million, and conservancy administration by Sh33 million in the 2023-24 financial year.

“Cess is a big contributor to your revenue, about 14–15 per cent of your total own-source revenue. What made this revenue drop in this FY?” Kajwang’ posed.

County officials dismissed suspicions of theft, saying the figures reflected “misclassification” and the effects of drought and heavy rains on markets. But the explanation was brushed aside. “It’s either that you have a system problem or something else. It’s impractical to misclassify collections from all key streams,” said Kajiado Senator Seki Kanar.

The Commission on Revenue Allocation estimates that Kajiado can raise Sh6.8 billion each year, but it only managed slightly over Sh1 billion in 2023-24.

“Figures should explain themselves. I feel, and my colleagues feel, that you are collecting but not reporting. That is theft,” Kajwang’ told Lenku.

Other Topics To Read

• Public Accounts Committee
• Governor Joseph Ole Lenku
• Joseph Ole Lenku
• Kajiado County
• PAC
• Kajiado County government
• Tata Chemicals
• Lake Magadi
• Senate turns heat on Tata Chemicals over Sh10 billion land rates amid Kajiado’s financial struggles
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Lenku defended his administration, pointing to progress under his leadership. “Our system is automated. We have grown from Sh250 million to over Sh1 billion, and we are working to realise our potential,” he said.

By law, royalties from mining are distributed with 70 per cent going to the national government, 20 per cent to counties, and 10 per cent to local communities. Senators insisted that the billions tied up in unpaid land rates and revenue losses represent missed opportunities to transform Kajiado.