The African Development Bank (AfDB) has approved a loan of US$40mn to Tiomin Kenya for Tiomin Titanium Mine Project in Kwale, near Mombassa, Kenya. The project involves dry mining and processing of titanium into ilmenite, rutile and zircon.

The project is a significant contribution to the diversification of the Kenyan economy and the promotion of non traditional exports.

The project will result in an increase in employment and significantly benefit local communities that will be empowered by means of skills development programme and new business opportunities that would include women entrepreneurship development.

The project will reinforce infrastructure developments such as the installation of a port terminal at Likoni, the construction of a new 8km road of about US$2.4mn, the upgrading of the highway to Tanzania, the creation of primary schools and clinics on the site and in host resettlement area, HIV/Aids awareness campaign and training programmes and safer drinking water supply.

The government of Kenya will also benefit from this project in the form of corporate income tax and royalties, duties and fees for fuel among others.
To date, the bank has approved five private sector operations in Kenya, all in the financial services sector. The most recent of which is a US$10mn SME support mechanism for Growth-Oriented women Enterprises Development Programme (GOWEDP) approved in 2005.

In 2004, the board approved a line of credit of US$7mn to CFC Bank; other recent operations in the financial sector include an equity fund to the Acacia Fund and equity to K-Rep Bank.