Nairobi Senator and Linda Mwananchi leader Edwin Sifuna has criticised President William Ruto’s decision to shut down Tata Chemicals Magadi, warning that the move could undermine investor confidence and threaten job creation in Kenya.
Sifuna said businesses need predictable laws and reliable dispute-resolution mechanisms before committing capital to a country, arguing that government decisions affecting companies must follow established legal procedures.
“When companies make decisions about where to put their investments, the dispute resolution regime in place is key because disputes arise all the time,” Sifuna said.
His remarks came after Ruto directed that Tata Chemicals Magadi cease its operations in Kenya, following a dispute over the company’s activities at Lake Magadi and the government’s demands for greater local value addition.
The President has argued that Kenya should derive greater economic benefits from its natural resources, including through local manufacturing, employment and increased opportunities for communities living around mineral extraction areas.
Ruto has also called for new investors to take over the opportunity at Magadi and establish industries that would process minerals locally rather than relying primarily on exporting raw materials.
However, Sifuna questioned the approach taken by the government, warning that an environment where companies can be ordered to leave through a presidential directive could make potential investors reconsider putting their money into Kenya.
He described the approach as the “Mambo Matatu, pack and go” model, suggesting that it creates uncertainty for companies that may face disputes with the government.
“The ‘Mambo Matatu, pack and go’ approach where the President can just shut down your business is very bad for investment and consequently, job creation,” Sifuna said.
The senator argued that disputes between governments and businesses are not unusual and should be handled through established mechanisms rather than abrupt administrative action.
He further linked the issue to the broader political platform of Linda Mwananchi, saying the movement would continue pushing for stronger adherence to the rule of law.
“It is why we in Linda Mwananchi insist on a return to the Rule of Law. That's our Plan!” he said.