SUSBIZ Kenya Workshop Promoting Sustainable Business

SUSBIZ Kenya Workshop
Promoting Sustainable Business development
in Kenya Companies
Jeremiah Nairowua
Community Development Officer
HISTORY OF TCML
1902 -
Deposit discovered
1911 -
Establishment of Magadi Soda
Company
1914 -
Outbreak of First World War
1924 -
Company purchased by Brunner Mond
& Co, Northwich, UK
1926 -
Formation of ICI; BM & Co a founder
member
HISTORY OF TCML
1991
-
ICI sells U.K. and Kenyan soda ash
interests
1995
-
Took Control of Rail Operations
1998
-
MPAP Project Commenced
2004
-
MPAP Construction started
2005 -
Tata Chemicals Ltd acquires a majority
stake in the Brunner Mond Group
2006
-
Tata Chemicals acquires 100% stake
2011
-
April 1, change of corporate name to Tata
Chemicals Magadi Limited in line with Tata
worldwide
THE PAM PLANT
Concession: Lake Lease
Duration
99 year lease from Kenya Government which was to
expire on 30.10.2023. Extended by 30 years to 2053
Area
227,000 acres approximately (Includes 11,000 acres
adjacent to Lake Natron in Tanzania)
Rights
To work the on Magadi deposits (subject to
Government’s right to extract minerals not affecting
Magadi)
Covenants
Not to assign or sublet without Government consent.
Notification to Government of discovery of other
minerals.
Royalty
Half yearly payments to Kenya Government for each
tonne of Soda and salt sold in the market.
Obligations
Housing and medical treatment for employees.
Government
Has right to appoint a Director and always has.
Railway Lease
Duration
99 year lease from Kenya Government which
was to expire on 30.10.2023. Extended by 30
years to 2053
Area
100 ft on either side of rail line from Magadi to
the Kenya Railways main - line at Konza, a
distance of 146 km.
Covenants
No assignments without Government approval
LAKE MAGADI SODA
ASH DEPOSITS
The approximately 40m thick Trona deposit is believed to have been
formed during the last 10,000 years.
The lake has no surface run off but is fed by over 200 hot and warm springs
and rainfall
Relatively high purity solid surface trona.
Total lake reserve of 595 million tonnes.
Regeneration rate estimated at 680,000 tonnes per year.
Easily worked relative to underground mining.
Relatively low cost operations
The US was historically the most competitive soda ash producer in the
world. In recent years, China has challenged this position.
The US still maintains its role as the world's largest soda ash exporter;
marketed through ANSAC
THE TCML CORPORATE
MISSION
Serving society through science
VISION
We shall be amongst premier chemical companies by:•Leveraging science to deliver new & innovative offerings
•Enhancing value to our customers
•Delivering superior returns to our shareholders
•Leading in corporate sustainability
•Nurturing innovation, learning through diversity & team
work amongst employees
VALUES
Integrity, Safety, Excellence, Care & Innovation
CSR: TATA’s Belief
• In a free enterprise, the community is not just
another stakeholder in the business but in fact
the very purpose of its existence - Jamshedji
Tata, Founder, Tata Group
Key Features of our CSR
• Guided by a CSR Policy
• Fully integrated in the Business Planning
process
• A unique community involvement and
engagement mechanism
• Key drivers are ownership, capacity building
and empowerment
Prioritization by
Community
Community needs identified
Process.
through the SWOT
SWOT Forum: Politicians, Administrators, Group Ranch
Managers, NGOs, Opinion leaders, Youth & Women.
Sustained over years through monthly meetings.
Key Pillars: Strategic Areas
Water
Health
Education
Employment & Micro-business
Transport and Infrastructure
Open Communication and
Dialogue Monthly SWOT
in session
Strategic Result Area 1:
Promote Water Access
•Water supply along the 42 Km company pipeline.
•Two villages (Ilparakuo and Oldonyonyokie) supplied
with water pipelines pumped from Magadi Township 7 Kms and 13 Kms respectively.
•Daily water supply by water bourser to community on
Nairobi-Magadi road as well as schools, dispensaries.
•Water supplied by train to over 6 villages between
Magadi and Kajiado (60 Km stretch).
13Km pipeline in
Oldonyonyokie
Strategic Result Area 2:
Promote Access to Health
The Company’s 55 bed capacity Magadi Hospital
open to members of the community. Attendance
statistics
- Outpatient: (60% )
- Inpatient:(90% )
Company subsidies cost of health care by 70%.
Magadi Hospital further waive all community debts.
Monthly Community Health Awareness Outreaches.
Support to health facilities - Oloika and Entasopia.
Vibrant HIV/Aids & Wellness Programme
Providing Quality Health Care to the Community
HIV/Aids Programme counselling session
Marking the World Aids Day..
18
Team building for Peer educators..
19
Strategic Result Area 3: Promote
Access to Education
3.1 Provision of Bursaries & Scholarships:
Magadi Division Scholarship: 32 students supported
annually for four years. Gender observed.
Kajiado County University Scheme : 16 students
supported annually for 4 years.
Sir Alexander Fleck scholarship: 16 secondary and 3
university employees children supported annually.
3.2 Infrastructural Development
Provision of teaching and learning facilities: 4 schools
in the Township amongst others.
A Case of Patterson Memorial
Secondary School
Community contributed cows worth over Ksh1Million
through ‘founder elders system’ and the land.
Result:
A mixed boarding secondary school, opened in Feb
2009.
400 students currently enrolled .
Over Ksh150 million spent by the Company and Tata
Chemicals Limited.
Support secured from Brian Patterson Education Trust
and GoK - teachers and Kajiado North CDF (labs).
Community ownership high: Pressure for triple stream
Multipurpose Hall in Patterson Memorial School
Strategic Result Area 4: Promote
Employment Opportunities
Allocation of non and semi-skilled jobs for local
community (100% for Salt and 75% ash plants).
A Community Work Skills Upgrade Programme:
One year job experience. Initiated in April 2006.
Attachments and vacation jobs for university students.
Jobs set aside for women and disabled.
40% of business premises allocated to the Community.
Outsourced non core jobs to local contractors.
Strategic Result Area 4:.. And MicroBusiness Development
Opportunities
A Case of Magadi Multipurpose Cooperative
Limited
Initiated in February 2004
-Has a membership of 1,000, drawn from Magadi
Division.
Employs 100 employees.
Started in Magadi Township cleaning contract
-Expanded to civil jobs
-Also running carwash, hardware and local distributor
for solar equipments.
Expanded to raw materials transportation from
lake to the factory.
Multipurpose shareholders with their Lorry !
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Strategic Result Area 5: Promote
Transport and Infrastructure
Road Transport
Assist Government in maintenance of 86Km MagadiKiserian Road.
Rehabilitation of feeder roads in Magadi Division
Rail Transport
Passenger coach for 104 km charging nominal fare.
Free transport for project materials & relief food
Transport for community during cultural ceremonies
“Train Ambulance Service”: Community flags down
the train at any point to carry sick people, using red
flags...
Environmental Conservation
• Annual Tree planting & Township Cleaning
Exercise
• Full involvement of the Community & children
• Four Parks: Three in Magadi and one in Kjd
• Community nurseries: Mgd, Kjd & Oloibortoto
THE BIRTH OF MAGADI SODA FOUNDATION
• CSR Programme was formalised in March 2002 when
the CSR office was opened and staffed.
• In 2005, IFC and the Company funded a study that
reviewed the impact of the Programme.
• A “Focussed Community Development Plan” was
developed and Royal Danish Embassy funded 1st phase
of its implementation.
• The Company saw an opportunity to scale up and in
June 2006 Benchmarking process started with the
community
members
(SWOT
Committee
representatives) being taken to India for a week.
THE MILESTONES OF MAGADI SODA
FOUNDATION
• Registered as a trust on 29th Feb 2009.
• Has a Board of Trustees: within and without.
• Mandate: To leverage resources from partners.
1. More bursaries (Tata Chemicals group employees).
2. Donated 60 laptop computers to schools (NCA).
3. 100 community members trained on Financial
Management (Equity Group Foundation).
4. Supported Magadi Hospital with medical
equipments (IMEC, US).
5. Rehabilitation of Sampu water pipeline. Feasibility
done and AMREF contributed 125 pipes.
• Officially launched on 30th August 2012
OFFICIAL LAUNCH OF MSF CONT.
OFFICIAL LAUNCH OF MSF
IMEC, US partnership
IMEC, US partnership
CHALLANGES
• Change of Name from Magadi Soda to Tata
Chemicals Magadi Limited.
• Out sourcing of non core jobs
• On May 20th 2011 closure of Community office
• Limited resources Vs increasing demands
IT PAYS TO BE IN HARMONY WITH OUR COMMUNITY !
The community during inauguration of the new railway equipment
Awards
1. Kenya Institute Of Management (COYA):
• 2000 Corporate Citizenship Award
• 2002 Corporate Citizenship Award
• 2003 Corporate Citizenship Award
• 2004 Corporate Citizenship Award
• 2005 Corporate Citizenship Award
• 2006 Corporate Citizenship Award
• Manager of the Year, CEO, HR and Financial
Management awards.
2. KHRC recognition of CSR as Best Practise
3. Recognised by IFC as a leader in CSR.
4. GBCHealth Commendation Award (Community
Investment ) in June 2011 in New York, USA.
Recognitions………
COYA– Corporate Citizenship
(won 5 times)
PIEA – Best Practice in SHE
Echo Challenge Gold Award
PIEA – Best Practice in Environment
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Recognitions………
CEO receiving COYA 2nd Runner-up
Award from Vice President Hon.
Moody Awori
COYA Professional Manager of the Year
2005
COYA Financial Excellence
Management Award
COYA Professional Manager of the Year
Award (Won 3 times in 4 years)
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ASHE..!