Kenya fetched better prices for titanium exports in 2025, but the improved earnings were insufficient to offset the steep decline in mining output following Base Titanium’s departure from Kwale County.
Fresh figures contained in the Economic Survey 2026 show the average export price for titanium ore concentrates rose by 3.9 per cent to KSh76,105.9 per tonne in 2025, up from KSh73,230.6 recorded the previous year.
Despite the higher prices, production of titanium minerals including ilmenite, rutile and zircon plunged from 198,469.5 tonnes in 2024 to 101,000.5 tonnes in 2025, effectively cutting output by almost half within a year.
The downturn has left Kenya’s mining industry scrambling for a new anchor sector after years in which Base Titanium accounted for a significant share of export revenues and royalty payments.
According to the Economic Survey, the decline was largely caused by “the exit of Base Titanium following the depletion of economically viable ore reserves.”
As production shrank, the value of titanium mineral output dropped sharply from KSh17 billion in 2024 to KSh7.8 billion in 2025. The slump also weighed on the broader mining sector, with the total value of Kenya’s mineral production falling from KSh25.5 billion to KSh20.3 billion over the same period.
Ilmenite production fell 54.7 per cent to 63,000 tonnes, while rutile output declined 28.3 per cent to 30,731.8 tonnes. Zircon recorded the steepest drop, sliding 56 per cent to 7,268.7 tonnes.
The slowdown also dented government earnings from mining royalties.
Base Titanium’s royalty payments to the State declined by 37.2 per cent to KSh706 million during the 2024/25 financial year, down from KSh1.12 billion previously, reducing Treasury collections tied to the company by more than KSh418 million.
However, total mining royalties and licensing revenues still rose from KSh3.3 billion to KSh3.8 billion, buoyed by stronger collections from cement minerals, soda ash and carbon dioxide operations.
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Royalties and levies from cement minerals increased to KSh1.52 billion from KSh1.15 billion, making the segment the largest contributor to mining revenues. Carbon dioxide royalties surged more than fivefold to KSh175.5 million, while royalties from Magadi Soda reached KSh670.9 million.
Beyond titanium, soda ash emerged as one of the sector’s strongest performers. Production grew 9.3 per cent to 289,610.8 tonnes, while the value of output climbed to KSh3.97 billion from KSh2.24 billion a year earlier.
Crushed refined soda also registered strong growth, with production rising 32.7 per cent to 697,768.8 tonnes and output value increasing to KSh1.67 billion.
Gold production, however, slipped to 329.1 kilogrammes from 358.5 kilogrammes recorded in 2024.
The latest data is likely to intensify pressure on the government to accelerate exploration and licensing of new mining ventures in rare earth minerals, gold, copper and industrial minerals as it seeks to plug the revenue gap left by the closure of the Kwale titanium mine.
