How 'are we slaves' comment from Kenya President plunged Tata Chemicals share price - What he said and what lies ahead

Tata Chemicals shares came under selling pressure on Friday, September 4, even as the broader Indian equity markets moved higher, following comments by Kenyan President William Ruto ordering the company's operations in the country to stop.

Tata Chemicals stock fell as much as 2.7% to its intraday low of ₹624.85 per share on the BSE.

During a development tour of Kajiado in southern Kenya on Thursday, Ruto said the government planned to replace Tata Chemicals with new investors, who would be required to set up manufacturing facilities within the country.

Ruto said on Thursday that he had directed India's Tata Chemicals to cease operations in Kenya, arguing that the company's presence had failed to benefit the country. According to the Kenyan President, the government plans to bring in two new companies to take over Tata Chemicals' operations.

"That TATA company ... had that contract for 100 years. They have not built anything in Kajiado, they have not built any factory in Kajiado," Ruto said.

“We have said we will bring a new company and... they should put a big glass company here in Kajiado. And another company to make chemicals here in Kajiado. Are we slaves to other people?” he added.

Ruto said he had asked a unit of the Mumbai-based company “to pack and go” because it had been exporting soda ash instead of using it at local facilities to manufacture glass and chemicals.

The latest development follows action taken by Kenya's government in late July, when it ordered Tata Chemicals' unit, Tata Chemical Limited, to suspend operations at the Magadi Soda factory and halted exports of soda ash.

The government had cited the company's alleged failure to make royalty payments and meet other regulatory requirements. The company did not respond to an emailed request for comment at the time.

In a statement issued on Thursday, Tata Chemicals said it respects the authority of the Kenyan government and remains committed to "constructive engagement through the appropriate legal and regulatory channels to resolve the outstanding matters."

The company added that its unit had submitted a "comprehensive" response to the issues raised by the ministry, including information regarding its compliance with applicable regulatory requirements.

Magadi, where the Tata Chemicals unit operates, is a township in southern Kenya's Kajiado County. Ruto was visiting the area earlier in the day when he made the remarks.

Tata Chemicals Share Performance

Tata Chemicals shares have remained under pressure across multiple timeframes. The stock has declined around 6% in 1 month, 12.5% in 3 months, 11% in 6 months and 33% over the last 1 year.

The Tata Group stock had climbed to its 52-week high of ₹1,026.00 in September last year, while its 52-week low of ₹581.30 was recorded in March 2026.

Recent Developments at Tata Chemicals

Last month, Tata Chemicals announced that its wholly owned subsidiary, Tata Chemicals North America Inc. (TCNA), had emerged as the successful bidder in the Chapter 11 bankruptcy proceedings of Searles Valley Minerals Inc. (SVM) in the US.

Under the transaction, TCNA will acquire North American soda ash customer contracts representing more than 500,000 metric tonnes. These contracts will be serviced between September 2026 and December 2028.

The contracts are expected to generate revenues of more than $110 million during the contract period.

According to the company, the acquisition will strengthen TCNA's presence in the North American soda ash market by expanding its domestic customer base and deepening long-term customer relationships. The transaction is also expected to provide better demand visibility, support customer retention and contribute to sustainable value creation.

R. Mukundan, CEO & Managing Director, Tata Chemicals Limited, said: "This acquisition represents a strategic opportunity to strengthen our presence in the North American soda ash market and expand our customer base. The acquired contracts secure over 500,000 metric tonnes of demand and are expected to generate revenues exceeding USD 110 million through December 2028."

Tata Chemicals Q1 Earnings

Tata Chemicals reported an 81% year-on-year decline in consolidated net profit to ₹60 crore for the quarter ended June, or Q1 FY27, as expenses increased. The company had posted a net profit of ₹316 crore in the year-ago period.

Meanwhile, total income rose to ₹4,311 crore during the first quarter of the current fiscal year, compared with ₹3,815 crore in the corresponding quarter of the preceding year, according to a regulatory filing.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.