Case Study Of Magadi Ash Company

This case study primarily focuses on the International Finance Corporation’s efforts to bring about socio economic development in the region of Magadi division by investing in a key player in the region- Magadi Soda Company. It is part of International Finance Corporation’s efforts to help people out of poverty by investing in the private sector. In this case, the Magadi Soda Ash Company is the key aspect of the private sector of magadi Division.
Formerly known as the Magadi Soda Company, Tata Chemicals Magadi joined in the Tata group in 2005. The Tata Company is based in the Lake Magadi region in Kenya (about 120km away from Nairobi). Almost 95 per cent and above of its products are sent to the South East Asia, the Indian subcontinent, Africa
One of the main programmes in which the company endorsed its concern was helping the Magadi community fight the prevalent HIV.
James Mathenge, CEO of Kenya's Magadi Soda Company’s biggest challenge to convince the higher authorities to endorse free anti-retroviral therapy (ART) for infected employees and their families. It was a major challenge as the HIV/ AIDS was a serious problem that was faced not just by the Magadi community but by the whole country. This company is not just the largest soda ash firm but also one of the oldest private firms which is over a century old. Soda Ash is made from Trona that is obtained from Lake Magadi. Soda ash is an important component for manufacturing a lot of consumer goods like glass, detergents, and various chemicals. Soda ash is also used widely in the manufacturing of many such varied products as pharmaceuticals, baked goods, toothpaste, and
This loan also helped the Magadi Soda Ash Company to get an extended 150 km branch line from the official Kenya Railway Lines to connect their plant directly to its main Nairobi-Mombasa railway branch.
Magadi Soda Ash Company has been fighting against AIDS since 2003 with joint efforts from the IFC financially. The programmes were enhanced at a steady rate. Because of the support from IFC, the Magadi Soda Ash Company was able to introduce an HIV/AIDS policy for its employees which was a detailed plan with the complete execution plan. A separate AIDS Committee was set up to deliver the aims and objectives of this policy and to mainstream HIV/AIDS into the company’s community development work.
Other help included the provision of voluntary counseling and testing services, as well as an increase in HIV/AIDS education and awareness activities in and around Magadi. Since 2004, free ART was administered to the affected employees and their