Tata Chemicals Weighs Legal Options After Kenya High Court Rules on Jurisdiction Dispute
Tata Chemicals is examining legal options after Kenya's High Court ruled it lacks jurisdiction over a dispute involving subsidiary Tata Chemicals Magadi Ltd.
Tata Chemicals is examining its legal options after Kenya's High Court ruled that it does not have jurisdiction over a dispute involving the company's Kenyan subsidiary, Tata Chemicals Magadi Ltd .In a stock exchange filing on October 24, Tata Chemicals said the court passed the order on October 23, stating that "the Hon’ble Court has no jurisdiction on the dispute and cannot take any further steps," adding that TCML was examining the order and would take "legal and all other necessary steps" to decide the way forward.The development comes amid an ongoing dispute between TCML and Kenya's Ministry of Mining, Blue Economy and Maritime Affairs over the subsidiary's operations in the country.Tata Chemicals said a high-level committee led by Kenya's Principal Secretary for Mining and TCML's chief executive officer is undertaking a detailed technical review of the matters raised by the ministry. The committee will submit its report to the office of the Cabinet Secretary for consideration and further direction.The committee was agreed upon following a meeting between the ministry and TCML executives on September 8. According to the company, the exercise is intended to establish a sustainable framework that promotes responsible mining, value addition, community development and mutually beneficial partnerships.What is the Kenya dispute about?The dispute began after the Kenyan ministry issued a notice to TCML on July 28, 2026, concerning its operations in the country.
TCML submitted its response and supporting documents on August 11, stating that it was compliant with applicable regulatory requirements.The issue gained further attention in September after reports said Kenyan President William Ruto had directed the company to cease operations. The reports cited concerns over the development of downstream industries, job creation and infrastructure.Tata Chemicals has previously said it respects the Kenyan government's authority and remains committed to resolving the matter through the appropriate legal and regulatory channels. It has also described TCML as an integral part of its operations.Tata Chemicals' Kenya businessTCML operates a soda ash business with an annual production capacity of around 350,000 tonnes.
Soda ash is used in industries such as glass manufacturing, chemicals and detergents.The Kenyan business contributed around 6% of Tata Chemicals' earnings before interest, taxes, depreciation and amortisation in the financial year ended March 2026.According to the figures provided in the earlier report, TCML's revenue stood at ₹586 crore in FY26, compared with ₹612 crore in FY25. Its EBITDA fell to ₹101 crore from ₹142 crore, while profit after tax declined to ₹48 crore from ₹118 crore.
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