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Sh100bn Kenya tea, flowers and meat exports stuck as Middle East conflict bites
Tea for export being loaded from a godown in Shimanzi industrial area where majority of Tea traders are operating in this picture taken on March 18, 2020.
Meat, vegetables, coffee, tea and flowers top the list of Kenya’s exports that have taken a hit following the disruption of export markets in the Middle East due to US-Israel war with Iran.
The crisis has had a direct impact on Kenyan exporters, who jointly ship goods valued at over Sh100 billion annually to Middle East countries such as Qatar, United Arabs Emirates (UAE), Saudi Arabia and Iraq.
Disruptions to shipping routes linked to Iran has left millions of kilograms of tea stuck in warehouses in Mombasa, threatening export earnings and farmer incomes.
East Africa Tea Traders Association said losses were piling up to $8 million (Sh1 billion) per week since sales to Middle East countries and Pakistan, which count for about 65 percent of tea sold at Mombasa auction, had plummeted.
The conflict has also disrupted Kenya’s negotiation with Iran to lift a suspension on tea import following a 2023 scandal in which tea from Nairobi was falsely branded as premium.
Cabinet Secretary for Investments, Trade, and Industry, Lee Kinyanjui, said the crisis has led to the suspension and restriction of key maritime and air cargo routes through the Red Sea and Gulf corridors.
“As a result, transit times have increased by 10 to 20 days,, affecting delivery timelines, freight costs have risen and air cargo delays of up to 48 hours are impacting perishable exports such as flowers and fresh produce,” said Mr Kinyanjui last week.
“These disruptions are particularly severe for high-value and time-sensitive exports, including horticulture, meat, dairy and specialty coffee.” In addition, tea exports, where Middle East accounts for up to 35 percent of volumes, have seen declining prices and market access risks.
He added that floriculture is incurring losses weekly due to spoilage and delays while meat exports have dropped to “less than five percent of normal volumes in some cases.”
The Kenya Tea Development Agency (KTDA) said recently at least 10 million kilogrammes of tea valued at about Sh3 billion is stuck in Mombasa warehouses due to logistical disruptions linked to the conflict.
