President William Ruto has announced plans to terminate what he termed an “exploitative, extractive” contract governing mineral resources in Magadi, vowing to open the area to multiple investors and ensure local value addition.
Speaking on the future of Magadi’s mineral resources on Saturday, September 5, 2026, Ruto said the existing arrangement, which he described as having lasted for about 100 years, could no longer continue in its current form.
“The exploitative, extractive contract that has been there for a hundred years cannot continue anymore,” Ruto said.
“For nearly 100 years, Kenyans, especially the people of Kajiado, have not received their fair share of the benefits from the minerals extracted from their land. That era is over.”
The President said the government will advertise afresh for companies interested in investing in Magadi, opening the opportunity to several firms rather than allowing one company to dominate the resource.
“We are going to advertise afresh so that other companies—not one company, other companies—three, four, five, six, 10 companies—can apply,” he said.
Ruto argued that the scale of mineral resources in Magadi was large enough to support multiple companies, potentially increasing competition and investment in the area.
The President further said the new contracts will place greater emphasis on value addition within Kenya, rather than allowing raw materials to be exported for processing elsewhere.
He said the government intends to require investors to establish industries locally, including a glass factory and a chemical manufacturing plant.
“Value addition is going to be done here in Kenya. A glass factory will be done here in Kenya. A chemical factory will be done here in Kenya,” Ruto said.
Why the closure
According to the President, the approach is intended to ensure that Kenyan workers and local resources benefit directly from the exploitation of the country’s mineral wealth.
He said the government wants to move away from an extractive model where raw resources leave the country with limited benefits to local communities, towards an industrialisation model that creates jobs and wealth domestically.
The proposed changes could reshape investment in Magadi, with the government seeking to attract multiple players while tying mineral exploitation to manufacturing, employment and local economic development.
Ruto said the ultimate objective is to ensure Kenya derives greater economic value from resources found within its borders.
“We can grow wealth, and we can create value from the products that are available and the resources that are here in the Republic of Kenya,” he said.
