Former Trade and Investments Cabinet Secretary Moses Kuria has backed President William Ruto’s directive requiring Tata Chemicals to end its operations in Kenya, arguing that the country must adopt a tougher industrialisation policy focused on processing raw materials locally.
Kuria said Kenya could learn from countries such as Indonesia, which he credited with transforming its economy after restricting the export of unprocessed nickel.
“Indonesia is the world’s 16th largest economy. It is also the largest producer of Nickel in the world accounting for 68% of global production,” Kuria said.
He attributed part of Indonesia’s economic growth to a policy banning the export of raw nickel, saying the strategy encouraged investment in domestic processing and manufacturing.
Kuria identified Indonesian investment minister Gen. Luhut Pandjaitan as the architect of the policy, adding that he had visited the Southeast Asian country several times and borrowed lessons from its industrialisation approach.
The former CS said Kenya should adopt a similar strategy instead of allowing valuable natural resources to leave the country in raw or minimally processed form.
Kuria also pointed to Uganda as another example of a country pursuing local value addition.
He recalled an intervention he made while serving in government to allow Devki Steel Mills to obtain iron ore from Uganda for its operations in Kenya.
According to Kuria, President Yoweri Museveni subsequently gave Devki a deadline to establish a processing facility in Uganda, a move he said the company eventually implemented.
“We will not take off if we keep on playing politics with our industrialisation policy,” Kuria said, throwing his weight behind the government’s position on Tata Chemicals and Magadi Soda.
President Ruto recently directed Tata Chemicals Magadi Limited to cease its operations, arguing that Kenya needed investors willing to establish manufacturing facilities and create greater value from the country’s mineral resources.
The directive followed a government suspension of the company’s mining and soda ash export operations amid regulatory and compliance concerns.
Kuria warned that Kenya risks losing its economic advantage to regional competitors if it fails to change its approach to industrialisation.
“If we do not do things differently Uganda, Ethiopia, DRC and Tanzania will overtake Kenya’s economy in the next five years,” he said.
He argued that Kenya’s economic development has largely depended on resources and activities “above the surface”, and called for greater attention to the country’s mineral wealth.
“So far our economy has survived on what is above the surface. To move forward we must move our focus to what is below the surface,” Kuria said.