The Court of Appeal in Nairobi has ruled in favor of Tata Chemicals Magadi Ltd (TCML), a subsidiary of Tata Chemicals, in a dispute with the County Government of Kajiado, Kenya. The court deemed the demand for land rates, which amounted to 783 crore (Kenyan Shillings 11.84 billion), as arbitrary and illegal. This decision resolves a long-standing litigation, providing clarity on land revenue obligations.
Favorable Court Ruling
Tata Chemicals has announced a positive development regarding a legal matter involving its subsidiary, Tata Chemicals Magadi Ltd (TCML), in Kenya. The Court of Appeal in Nairobi has ruled in favor of TCML in its dispute with the County Government of Kajiado.
Details of the Dispute and Ruling
The core of the dispute concerned a demand for land rates by the County Government. The outstanding revised demand stood at 783 crore (Kenyan Shillings 11.84 billion as of March 31, 2025. The Court of Appeal’s order, dated October 24, 2025, declares that this demand was arbitrary and illegal. TCML is not obligated to pay these arrears due to the lack of an open and accountable framework for determining land rates.
Financial Impact and Contingent Liabilities
The amount of the disputed demand was previously classified as a contingent liability in the company’s books. Following this favorable judgment, management will assess the appropriate course of action regarding these contingent liabilities, taking into account legal advice.
Source: BSE
