Tata Chemicals Magadi Ltd has secured relief from a KSh17 billion land rates demand issued by the County Government of Kajiado, following a ruling by the Court of Appeal that declared the levy unlawful and arbitrary.
The judgment, delivered on October 24, 2025, marks a turning point in one of Kenya’s most high-stakes land disputes involving a multinational corporation and a devolved government.
The appellate court upheld an earlier decision by the Environment and Land Court, which found that Kajiado County had failed to establish a transparent and legally enforceable framework for assessing land rates on Tata Chemicals’ expansive tracts in Magadi.
The court ruled that the county’s demand lacked procedural fairness and violated principles of public administration, effectively shielding the company from the multi-billion shilling claim.
Tata Chemicals, had challenged the county’s assessment, arguing that the rates were inflated, unsubstantiated, and imposed without due consultation. The company maintained that it had consistently complied with statutory obligations and accused the county of using coercive tactics to extract revenue.
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The court agreed, noting that the demand was issued without valuation reports, public participation, or gazetted guidelines thus rendering it legally defective.
The court noted that Tata Chemicals Magadi Ltd is not obliged to pay the arrears in the absence of an open and accountable framework for determining land rates.
The company had previously disclosed this pending litigation in a letter dated August 14, 2023. As of March 31, 2025, the revised demand from the County Government stood at KShs 11.84 billion
The ruling has far-reaching implications for land governance and investor confidence in Kenya’s extractive and industrial sectors. Legal experts say it sets a precedent for counties to adhere to constitutional standards when levying rates, especially on strategic assets and long-term leaseholds.
For Tata Chemicals, the decision not only averts a financial crisis but also reinforces its operational stability in Magadi, where it has mined soda ash for over a century.
The dispute traces back to 2021, when Kajiado County issued a demand notice to Tata Chemicals for unpaid land rates allegedly accrued over several years. The county claimed the company owed Sh17 billion for occupying over 224,000 acres of land, including buffer zones and mining areas.
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Tata Chemicals contested the figure, citing historical leases dating back to colonial agreements and arguing that the land was held under special tenure, not subject to standard rating. The standoff escalated into a legal battle, drawing in the National Land Commission and sparking debate over the powers of county governments in land administration.
Following the court’s ruling, the case closes with national prominence, reaffirming the judiciary’s role in curbing fiscal overreach and protecting lawful enterprise, especially multinationals, which many claim have long been “Over-exploited” by the harsh business environment in Kenya
By Masaki Enock
