Tata Chemicals has embarked on a Sh2.4 billion expansion plan to spur its growth.
This was revealed by Tata Chemicals Chief Executive Officer Subodh Srivastav in an exclusive interview with Nation on Tuesday.
“Tata Chemicals contributes between $6 million and $8 million to the local economy every month.”
“This year we are paying Sh1 billion in taxes to Kenya Revenue Authority (KRA), including income taxes, and at least Sh600 million in royalties to the Ministry of Petroleum and Mining,” Mr Subodh said.
He said the company has come up with elaborate plans to protect its 490 staff and 800 contractors from mass layoffs amid shrinking business over the past five years.
Mr Subodh said the company will inject Sh2.4 billion to boost its operations while eyeing double-digit growth in the next five years. Part of the capital will be used to revamp its technology.
“We intend to double our production capacity and tap into new markets globally. This will mean more annual turnover, more taxes to the government and more job opportunities for the locals,” Mr Subodh said.
The company is embroiled in a Sh10 billion dispute with the County Government of Kajiado over land rates, levies, permits and licences. It has obtained a court order barring the county government from interfering with its operations. This is after county officials threatened to shut down the Tata depot in Kajiado town last week.
Tata Chemicals, formerly known as Magadi Soda Company, is the biggest foreign-owned firm in the entire county in terms of capacity and financial muscle. The firm sits on a massive 224,991 acres and harvests soda ash from Lake Magadi.