Kenya tea exports have slowed sharply after shipping disruptions linked to the Iran conflict left millions of kilograms of tea stranded at the port of Mombasa, dealing a blow to one of the country top foreign exchange earners.
About eight million kilograms of tea have remained stuck in warehouses for weeks, according to the East Africa Tea Traders Association, which oversees the Mombasa tea auction. The delays have triggered mounting financial losses and raised concerns about farmer incomes.
George Omuga, managing director of the association, said the industry has been losing approximately USD 8 million per week since early March due to stalled shipments.
“The current conflict in the Middle East has had a direct negative impact on this auction,” Omuga said.
The Middle East accounts for between 20% and 25% of Kenya tea exports, making it a critical destination for the commodity. However, exports to the region have effectively halted as shipping routes remain uncertain and costly.
Buyers have also scaled back purchases, citing concerns over delayed deliveries and existing stock that has yet to reach its destination. As a result, activity at the Mombasa tea auction has slowed significantly.
Shipping disruption deepens crisis
The disruption stems from reduced vessel movement through key maritime routes, including the Strait of Hormuz and the Bab el Mandeb Strait. Many shipping lines have rerouted vessels around the Cape of Good Hope, increasing transit times and driving up freight and insurance costs.
Tea shipments to countries such as Pakistan and Egypt are still moving, but exporters say the longer routes are squeezing profit margins.
President William Ruto recently stated that tea exports remained strong, noting that 81% of tea offered at auction in March was sold, up from 75% a year earlier.
However, traders dispute that assessment. Omuga clarified that the figure reflects auction sales recorded between January and March 2026, not actual exports completed during the period.
“The reality on the ground does not show a positive outlook,” he said, adding that logistical bottlenecks continue to worsen.
Kenya exports about 100 million kilograms of tea annually to Middle Eastern markets, highlighting the sector heavy reliance on the region.
The ongoing crisis has revived calls for diversification. Industry players are urging both the government and private sector to expand into alternative markets, particularly within Africa, to reduce exposure to geopolitical shocks.
The sector is still recovering from earlier disruptions, including the decline in exports to Russia following the Ukraine conflict. Before that crisis, Russia imported 29 million kilograms of Kenyan tea annually, a figure that has since dropped to five million kilograms.
Analysts say building resilience will require investment in new trade partnerships and improved logistics infrastructure.
REUTERS
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