Ruto's decrees spark legal battles and diplomatic tensions

President William Ruto is facing renewed criticism over his seemingly erratic decrees and policy u-turns that have exposed his administration to ridicule, and equally generating diplomatic tensions and legal challenges.

Pundits argue that by making roadside declarations attacking companies or institutions, and cancelling binding contracts, the Head of State exposes the country to diplomatic tensions and legal landmines thus placing a heavy tax burden on the electorate.

From the orders he made against small foreign traders, his recent decision to stop a French firm from construction of the multi-billion Rironi-Mau summit road and now to the controversy surrounding TATA chemicals company, observers warn that President Ruto has a knack for shooting first and aiming later.

His administration is currently in the throes of a diplomatic gaffe that is morphing into a tiff with  Burundi following his announcement of a crackdown on foreign traders operating small-scale businesses in Kenya. He has also through his past statements caused uproar in Nigerla, Democratic Republic of Congo and Tanzania.

While the President claims that the move was to protect economic opportunities for Kenyans, he finds himself fighting off criticism of perpetuating xenophobia as reports of foreign traders being attacked dominated the headlines this past week.

His order has also caused a humanitarian crisis because hundreds of mothers and children are sleeping in the cold outside the Burundi embassy in Nairobi.

Migrants returing home have also reportedly remained stranded at border crossing points like Isebania because of lack of transport.

And whereas the directive affects Burundians, Ugandans, Tanzanians and Rwandese, - whose nationals enjoy rights under the East African Community Common Market framework- Burundians seem to have borne the brunt.

Reeling from pressure emanating from the international community, the government has been forced into fire-fighting the fall out caused by the President’s remarks. Prime Cabinet Secretary Musalia Mudavadi has since moved to clarify that the crackdown on foreign nationals engaged in small-scale trade, is meant to enforce immigration, work permit, registration and licensing laws rather than imposing a blanket ban.

He said the measures announced by President Ruto on September 2 seek to protect vulnerable sectors of the economy, promote fair competition and protect the livelihoods of Kenyan citizens.

“Let me therefore clarify that Kenya is not implementing a blanket ban on foreign nationals engaging in small scale business, but is seeking to ensure that their participation is consistent with the East African Community Common Market Protocol and applicable national law,” said Mudavadi.

Foreign Ministry official Korir Sing’oei also met Burundians in Nairobi, seeking to reassure them that the exercise was intended to regularize their status and enhance their security.

In the Rironi-Mau summit road construction case, billions of taxpayers’ money was expended by government to pay off French companies that were initially contracted to construct the road, following a U-turn by the President which saw the tender handed to a Chinese firm.

According to a 2024/2025 financial year report by the Office of the Auditor General, the National Treasury irregularly withdrew Sh7.3 billion from the fuel levy to compensate a consortium of French firms whose contract to build the Nairobi-Nakuru-Mau summit road was terminated illegally.

The payment to the consortium comprising Vinci Highways SAS, Meridian Infrastructure Africa Fund and Vinci Concessions SAS was made under an emergency vote and required belated approval from Parliament through a supplementary budget.

More recently, a directive by the Head of State for the closure of TATA chemicals Magadi, which he said has been operating in the country for 100 years, has left the country facing another legal challenge because the matter is now in court. Tata argues that it has a legally binding contract and all the necessary papers.

On September 3, Ruto made a rabble-rousing roadside decree for the company to ship out over its alleged exploitative practices and failure to invest in Kajiado County.

“We have vast resources at Lake Magadi that can transform Kajiado County and our country, Kenya. That Tata Chemicals company has had a license for 100 years but has not built anything in Kajiado or employed any people from Kajiado,” said Ruto.

 “I told them to pack up their things and leave. Let them go. These people come here, take our resources and transport them to India and other countries,” he said.

He doubled down on his directive by stating that the government will issue the Lake Magadi soda ash mining licence to a new investor, who will be required to establish industries that add value to the resources extracted from the area. According to Ruto, the new investor would be required to establish a major glass manufacturing plant in Kajiado, as well as another facility for the manufacture of chemicals.

 "We will bring in a new company, and the condition for that company is that it must establish a major glass manufacturing plant here in Kajiado County, as well as another company to manufacture chemicals.”

The opposition would later however accuse the President of having vested interest in the company and the vacate order was as a result of it not bowing to pressure.

“The flimsy excuses given by President Ruto are just a decoy. The truth of the matter is, there are huge deposits worth trillions of shillings of lithium metals underneath the Magadi area. Further, there are huge oil prospects in the same vicinity within which Tata Chemicals Limited operates,” Methu said.

He told journalists during a press briefing that the President, through his “insatiable appetite for material wealth”, wanted to create a crisis by forcing Tata Chemicals out and allegedly bringing in his associates to undertake oil exploration and cash in on the fortune.

Mining Cabinet Secretary Hassan Joho would however move to the President’s defense saying that an initial notice requiring Tata Chemicals to address key compliance issues was issued in July, nearly two months before the public statements on the company’s future.

Speaking in Kiswahili, he said: “Rais hakuamka tu akatoa agizo. Taarifa ya kusitishwa kwa leseni ya Tata Chemicals ilifanywa Julai...Kulikuwa na mashauriano kwa muda mrefu baina ya sisi na Tata. Vile vile kumekuwa na mashauriano na Rais lakini wakamua kwenda kortini (We have had discussions with Tata, but they have decided to go to court),” said Joho.

“Korti iliawaambia nendeni mcomply na sheria ya mwaka 2016 ya kuchimba madini Kenya (The court told them to comply with the 2016 mining regulations),” added the CS.  Public funds had however already been expended.

Later on, September 8, Mining Cabinet Secretary Hassan Joho announced to the public that he had overseen the establishment of a high-level technical committee to resolve outstanding compliance issues surrounding the suspended operations of Tata Chemicals Magadi Limited.

The committee, he said, would be led by the Mining Principal Secretary Harry Kimtai on behalf of the government and Tata Chemicals Magadi Limited CEO Swaminathan Nagarajan representing the company.

It will conduct a technical review of the outstanding issues and submit its findings to Joho for consideration and further direction.

Earlier in April, Ruto also found himself in a spot after the continent’s most populous nation, Nigeria, by suggesting their English was essentially incomprehensible.

"We speak some of the best English in the world. If you listen to a Nigerian speaking, you do not know what they are saying. You need a translator even when they are speaking English," he remarked.

He later walked back the comment, terming it a joke. But that joke did not land. Abuja was not laughing, and the president was forced into a rare, awkward clarification, referring to Nigerians as “in-laws” to douse the fire.

But President Ruto is not the only Head of State that who has placed a Financial burden on Kenyans. In 2019, Kenya was forced to pay billions to an Italian firm after the tender for the construction of the Arror and Kimwarer dams were cancelled by then President Uhuru Kenyatta.

Analysts now hold that Ruto’s declarations and gaffes are a result of his shifting political interests and his need to utter populist statements meant to appease the masses.

Chief Executive Officer of the Africa Policy Institute Peter Kagwanja now says that the Head of State and his officials need to adopt more deliberative approaches to solve issues other than roadside or knee-jerk decrees that impact the country.

“The purpose of governance is not to be dramatic about things. The purpose of governance is to stabilize the politics and ensure that what you do today can be used as an example, a precedence to how we do things tomorrow..,” observes Kagwanja.

Adding, “ These soko-mjinga pronouncements that we have been seeing across the country and which have become a culture of politics over the last four years is what we are against. The President should stop it and bring the country to order.”

Former UNCTAD Secretary General Mukhisa Kituyi avers, “President William Ruto has to think about speaking from both ends of his mouth. He has enough expertise in his government to tell him that this is wrong. But the fact that he goes on like this, tells you he does not listen to counsel...”

On the TATA chemicals company controversy he added: “Ruto is not expelling Tata; Ruto is blackmailing a major international cooperation because he wants easy money. He will get his Joho backstage to go, and we will renegotiate and show Tata that if you do not accept what we are offering, we are capable of this radical decision to throw you out of here.”