Kenya’s Missed Opportunity with the Exit of Base Titanium

By Andrew Mwangura

Email, thecoastnewspaper@gmail.com

The recent cessation of operations by Base Titanium in Kenya marks the end of an era for the mining sector in Kwale County.

For an 11-year tenure, the company exported a staggering 5,208,000 tons of minerals, including ilmenite, rutile, and zircon, aboard foreign-flagged and foreign-owned bulk carriers manned by foreign seafarers.

While the economic contribution of Base Titanium to Kenya’s economy cannot be understated, the government’s failure to leverage this opportunity to revitalize the Kenya National Shipping Line (KNSL) and empower Kenyan seafarers is a glaring miss of opportunities.

As Kenya reflects on this chapter, it is imperative to analyze what the government should have done and what it must do now to secure the future of its maritime sector.

What the government should have done is to revive the KNSL established in 1989 so as to position Kenya as a maritime player in the region. However, mismanagement and lack of investment rendered it defunct. 

During Base Titanium’s operations, the government should have revitalized the KNSL to handle the transportation of minerals. By doing so, Kenya could have retained a significant portion of the revenue that went to foreign shipping companies. 

The KNSL could have been restructured through public-private partnerships, with Base Titanium as a key client, ensuring a steady flow of business to empower Kenyan Seafarers.

The fact that foreign seafarers manned all the vessels exporting Kenya’s minerals is a stark reminder of the underutilization of Kenyan maritime talent. 

The government should have invested in training and certifying Kenyan seafarers to international standards, creating employment opportunities and ensuring that Kenyans benefited directly from the export of their resources.

Collaborations with international maritime institutions and the establishment of specialized training academies could have positioned Kenya as a hub for skilled seafarers in the region.

Enact Content laws

Kenya lacks robust local content laws in the maritime and mining sectors. The government should have mandated that a percentage of all exports be transported by Kenyan-flagged vessels and that a quota of seafarers on such vessels be Kenyan.

This would have ensured that the benefits of Base Titanium’s operations trickled down to the local economy.

Develop Port Infrastructure

The government should have invested in modernizing the Port of Mombasa to handle bulk carriers efficiently.

Improved port infrastructure would have reduced turnaround times for ships, making Kenyan ports more attractive for international shipping lines and creating opportunities for the KNSL to compete.

Revitalize National Shipping Line

The exit of Base Titanium underscores the urgency of reviving the KNSL. The government should conduct an audit of the KNSL’s assets and liabilities, inject capital, and seek strategic partnerships with global shipping companies. 

The KNSL should focus on regional trade routes and bulk cargo transportation, leveraging Kenya’s strategic location along major shipping lanes.

Maritime Education and Training

The government must prioritize the training of Kenyan seafarers. This includes funding maritime academies, offering scholarships, and partnering with international maritime organizations to ensure Kenyan seafarers meet global standards.

The Kenya Maritime Authority (KMA) should also streamline the certification process to make it easier for Kenyan seafarers to secure jobs on both local and international vessels.

Enforce Local Content Regulations

Kenya should enact and enforce local content laws that mandate the use of Kenyan-flagged vessels and seafarers for a percentage of all exports and imports.

This will create a sustainable maritime industry and ensure that Kenyans benefit from the exploitation of their natural resources.

Diversify the Maritime Economy

With Base Titanium’s exit, the government should explore other sectors that can drive demand for maritime services.

This includes promoting the export of agricultural products, such as tea and coffee, through Kenyan-flagged vessels. 

Additionally, Kenya should position itself as a transshipment hub for landlocked neighboring countries, further boosting the maritime sector.

Leverage the Blue Economy

The government must fully embrace the Blue Economy agenda, which includes not only shipping but also fisheries, tourism, and offshore mining.

By developing a comprehensive Blue Economy strategy, Kenya can create thousands of jobs and attract investment in the maritime sector.

Engage Stakeholders

The government should engage stakeholders, including shipping companies, seafarers, and mining firms, to develop a cohesive strategy for the maritime sector.

This will ensure that policies are practical and aligned with the needs of the industry.

The exit of Base Titanium is a wake-up call for Kenya to rethink its approach to the maritime sector. The government’s failure to capitalize on the opportunity presented by Base Titanium’s operations is a lesson in the importance of foresight and strategic planning.

However, it is not too late to act. By revitalizing the Kenya National Shipping Line, empowering Kenyan seafarers, and enacting local content policies, Kenya can transform its maritime sector into a pillar of economic growth.

The Blue Economy holds immense potential, but realizing this potential requires bold and decisive action. The time to act is now.

The author is an independent maritime policy analyst with expertise in maritime economic development.