Kenya Tea Exports Hit by Middle East Conflict, Losses Reach Sh3.1 Billion

By Mbungu Harrison

Email, thecoastnewspaper@gmail.com

Kenya’s tea sector is facing mounting losses estimated at Ksh3.1 billion following disruptions in key export routes linked to the ongoing conflict between Iran and the United States.

Exporters say the crisis has significantly affected shipments to the Middle East one of Kenya’s largest tea markets triggering supply chain bottlenecks and slowing trade flows.

According to the East African Tea Trade Association (EATTA) managing director George Omuga the country typically exports about two million kilograms of tea to the Middle East every week.

However, the current geopolitical tensions have disrupted shipping routes, particularly through the Port of Salalah, a key logistics hub for the region.

As a result, between six and eight million kilograms of tea are currently stranded at the Port of Mombasa and in warehouses, awaiting clearance and shipment.

“About 65 percent of tea exports have been affected due to disruption of shipping routes in the Middle East, leading to significant losses in the sector,” said Omuga.

Industry stakeholders estimate that the value of tea exports lost over the past three weeks stands at approximately $24 million equivalent to Ksh3.1 billion.

The Middle East remains a critical destination for Kenyan tea, with Iran and Pakistan ranking among the leading buyers. Exporters warn that prolonged instability in the region could further erode earnings and destabilize the sector, which is a major foreign exchange earner for the country.

The MD spoke in Mombasa during a stakeholders’ meeting convened by the Kenya Export Promotion and Branding Agency (KEPROBA) where industry players called for urgent interventions to cushion exporters from escalating losses.

Analysts now caution that continued disruption could have ripple effects across the broader economy, particularly affecting smallholder farmers, logistics firms, and foreign exchange inflows tied to tea exports.