abusesaffiliationarrow-downarrow-leftarrow-rightarrow-upattack-typeburgerchevron-downchevron-leftchevron-rightchevron-upClock iconclosedeletedevelopment-povertydiscriminationdollardownloademailenvironmentexternal-linkfacebookfiltergenderglobegroupshealthC4067174-3DD9-4B9E-AD64-284FDAAE6338@1xinformation-outlineinformationinstagraminvestment-trade-globalisationissueslabourlanguagesShapeCombined Shapeline, chart, up, arrow, graphLinkedInlocationmap-pinminusnewsorganisationotheroverviewpluspreviewArtboard 185profilerefreshIconnewssearchsecurityPathStock downStock steadyStock uptagticktooltiptwitteruniversalityweb
Article

29 Jul 2019

Author:
Stanley Ngotho, Business Daily (Kenya)

Kenya: Local authority in water-scarce area demands payment for water abstraction by Tata Chemicals; includes company's comment

"Kajiado, Tata locked in fresh row"

The wrangles between Kajiado County government and Tata Chemicals over the control of water resources in Magadi has gone full throttle. The county government is demanding hefty water levies and has threatened to disconnect the soda ash manufacturer should it fail to pay. What begun in 2018 as a tiff over unpaid land rates amounting to Sh17 billion has now degenerated into a vicious turf war in the semi-arid part of the county. The tension might deal a blow to the company that requires more than 1.2 million litres of water daily in the plant and entire Magadi town...

Tata has a capacity of over 600,000 tonnes of soda ash annually. The company cannot survive without consistent water supply in their production. Mr Ole Lenku has since threatened to disconnect water to Magadi if Tata chemicals does not settle monthly water bills slapped on them. On April 16, the executive committee member in charge of water Michael Semera wrote to Tata chemicals indicating the Kajiado’s intention to metre bulk water supply. The company was required to sign into a monthly bulk water supply agreement. "In the meantime, you are required to pay a fixed monthly charge of Sh1,000,000 for water abstracted and supplied to your company,” read part of the letter.

On June 17, 2019, Tata Chemicals Harish Nair, executive director, responded in a letter referring the county to a High Court judgment of May 3 that prohibited Kajiado from “trespassing, entering, locking or interfering with company’s premises in Kajiado and Magadi town.” Tata Chemicals maintains it has been paying for disputed utility to Water Resource Authority (WRMA).