Former Deputy President Rigathi Gachagua has alleged that President William Ruto demanded either Ksh9 billion or a 40 percent ownership stake from Tata Chemicals as a condition for the company to continue operating in Kenya.
Gachagua made the claim while criticising what he described as a worsening business environment for foreign investors in the country. He presented Tata Chemicals’ alleged experience as an example of the pressure he says foreign-owned companies are facing under the current administration.
According to Gachagua, Tata Chemicals was allegedly given two options: pay Ksh9 billion or surrender 40 percent of its shares to Ruto. He claimed that the company rejected both proposals and subsequently became a particular target.
The former deputy president did not provide further details in the remarks about when the alleged demand was made or how it was communicated. However, he used the claim to raise broader concerns about the treatment of international businesses operating in Kenya.
Gachagua further alleged that Tata Chemicals was not the only Indian-owned company to face such pressure. He claimed that other businesses had allegedly been asked to surrender portions of their ownership to individuals linked to the President, with some companies eventually stopping their operations in Kenya.
He argued that such alleged actions could undermine confidence in Kenya as an investment destination, particularly among foreign companies that have operated in the country for many years.
Gachagua also claimed that the situation was causing some international investors to reconsider expanding their businesses in Kenya. He said investors he met during a visit to the United States had expressed concerns about committing additional funds to the country because of what they perceived as an uncertain investment environment.
The former deputy president called on the international community to pay attention to the allegations surrounding foreign-owned businesses in Kenya. He argued that investors require protection from what he characterised as politically motivated attempts to gain control of private companies.
The allegations involving Tata Chemicals therefore formed part of Gachagua’s wider criticism of the government and its approach to foreign investment. While he presented the Ksh9 billion demand and the alleged 40 percent stake as evidence of the pressures investors face, the claims remain allegations made by Gachagua and would require independent verification.