Base Titanium Exit Hits Kenya Mining Sector as Production Falls
Kenya’s mining sector suffered a sharp decline in 2025 after the closure of Base Titanium’s Kwale operation drove a 49% drop in titanium production and significantly reduced the value of mineral output.
Kenya’s mining sector is facing a major revenue shortfall following the closure of Base Titanium Ltd.’s Kwale operation, which resulted in a near-halving of the country’s titanium production in 2025.
Data from the Economic Survey 2026 highlights the impact of the mine’s closure on Kenya’s mineral production and government revenues.
Although the average export price for titanium ore concentrates increased by 3.9% to KSh76,105.9 ($590) per tonne, the price improvement was not enough to offset the sharp fall in production.
Combined output of ilmenite, rutile and zircon dropped to approximately 101,000.5 tonnes in 2025, down from 198,469.5 tonnes in 2024, following the depletion of economically viable ore reserves at the Kwale operation.
Kenya titanium production decline hits mineral revenues
The collapse in titanium production had a significant impact on the value of Kenya’s mineral output.
The total value of titanium minerals fell to approximately KSh7.8 billion in 2025, from KSh17 billion in 2024.
The decline contributed to a reduction in Kenya’s overall mineral production value, which fell from KSh25.5 billion to KSh20.3 billion during the year.
The figures highlight the importance of the Kwale operation to Kenya’s mining industry and the challenges facing the country as it seeks to diversify its mineral production base.
Base Titanium closure cuts government royalties
The impact of the Kwale mine closure also extended to government revenues.
Royalties paid by Base Titanium fell by 37.2% to KSh706 million during the 2024/25 financial year, contributing to an estimated KSh418 million shortfall in Treasury collections.
Despite the decline in titanium-related revenue, total mining royalties and licensing fees across Kenya increased by 15% to KSh3.8 billion.
The increase was supported by stronger collections from other areas of the mining and industrial minerals sector.
Cement minerals and soda ash support Kenya mining revenues
Cement minerals emerged as the largest contributor to mining-related government revenue, with levy collections reaching approximately KSh1.52 billion.
Carbon dioxide royalties also recorded a substantial increase, rising more than fivefold to KSh175.5 million.
Magadi Soda contributed a further KSh670.9 million to government revenues.
Soda ash was among the strongest-performing mineral commodities during the year. Production increased by 9.3% to 289,610.8 tonnes, while its market value almost doubled to approximately KSh3.97 billion.
Production of crushed refined soda ash also increased, rising 32.7% to 697,768.8 tonnes, with an estimated value of KSh1.67 billion.
Gold production, however, remained subdued, declining to 329.1 kilograms from 358.5 kilograms in 2024.
Kenya faces pressure to accelerate mining investment
The decline in titanium production has increased pressure on the Kenyan government to accelerate exploration, licensing and development of new mining projects.
The country has identified opportunities across commodities including gold, copper, rare earths and industrial minerals, but bringing new projects into production will require investment, regulatory certainty and faster approval processes.
The loss of Base Titanium’s large-scale operation also demonstrates the risks associated with relying heavily on a limited number of major mining assets.
For Kenya to expand its mineral export revenues, the development of new projects will need to offset declining production from mature operations while creating a more diversified mining sector.
Kenya seeks new sources of mineral growth
The sharp fall in titanium production in 2025 represents a significant setback for Kenya’s mining industry, but it also underscores the potential for diversification.
Soda ash and cement minerals demonstrated that other parts of the sector can continue to generate revenue even as major operations wind down.
However, developing Kenya’s next generation of mines will depend on the government’s ability to attract exploration capital, provide a predictable regulatory environment and move viable projects through the licensing and development pipeline.
With opportunities in gold, copper, rare earths and industrial minerals, Kenya has the potential to rebuild its mineral production base.
The immediate challenge will be replacing the production and revenue lost following the closure of Base Titanium’s Kwale operation.
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