Former Deputy President Rigathi Gachagua has accused President William Ruto of creating fear among foreign investors following the government’s decision to terminate Tata Chemicals Magadi Limited’s operations in Kenya.
Gachagua, who leads the Democracy for Citizens Party (DCP), claimed the directive against Tata Chemicals was part of a wider pattern of government actions that he said were undermining investor confidence and threatening foreign-owned businesses.
“Kenya’s new dictator Ruto has caused panic among foreign investors by closing down investments,” Gachagua said, alleging that investors who had operated in the country for decades were being pushed out.
His remarks came days after Ruto directed that Tata Chemicals should leave Kenya and that the Magadi soda ash operation should be opened to new investors. The President said the government wanted a new arrangement that would prioritise local value addition, including the establishment of glass and chemical manufacturing facilities in Kajiado.
Gachagua alleged that more than 400 Indian businessmen had already shut down their investments after allegedly being pressured to surrender shares or make payments to individuals linked to the government.
He further claimed that properties belonging to Indian families were being taken over as leases expired, alleging that Lands Principal Secretary Nixon Korir was assisting in the process.
The former Deputy President also made a serious allegation regarding Tata Chemicals, claiming that the company had been targeted after allegedly refusing to pay a KSh9 billion bribe or surrender 40 per cent of its shares to Ruto.
Gachagua did not provide evidence to substantiate the bribery allegation or his broader claims concerning foreign investors. The allegations should therefore be treated as claims rather than established facts.
He warned that the developments could have significant consequences for Kenya’s economy, arguing that uncertainty surrounding foreign investments could discourage companies from committing capital to the country.
“I am in the United States of America where investors have categorically told me that no investor can risk investing in Kenya with what is going on in the country,” he said.
Gachagua called on the international community to intervene and pressure the Kenyan government to protect foreign investments and restore confidence among investors.
“Kenya is not Mr. William Ruto’s personal property,” he said, insisting that the country belongs to its citizens and remains part of the international community.
The government has not, in the statement provided, responded to Gachagua’s allegations concerning the alleged KSh9 billion payment or 40 per cent share demand.
The dispute over Tata Chemicals comes as the government seeks to renegotiate how Kenya benefits from the exploitation of natural resources at Lake Magadi, with Ruto insisting that future investors must prioritise processing, manufacturing, employment and greater economic benefits for local communities.