Kenya tea exports have slowed sharply after disruption to global shipping routes linked to the Iran conflict left about eight million kilograms of tea stranded in warehouses in Mombasa for weeks, threatening export earnings and farmer incomes.
The East Africa Tea Traders Association said the backlog has continued to grow since early March, with losses estimated at USD 8 million per week.
The association oversees the Mombasa tea auction, a key platform for the country’s exports.
Managing Director George Omuga said the crisis is already affecting trade flows and weakening demand.
“The current conflict in the Middle East has had a direct negative impact on this auction,” he said.
The Middle East accounts for between 20% and 25% of Kenya tea exports. However, shipments to the region have stalled as shipping routes remain disrupted.
Buyers have also scaled back purchases as previously bought tea remains undelivered, further straining the weekly auction.
Shipping disruption drives costs and uncertainty
The disruption has been linked to instability along major maritime routes, including the Strait of Hormuz and the Bab el Mandeb Strait. Shipping firms have suspended routes, rerouted vessels around Africa and imposed emergency surcharges.
Tea destined for Pakistan and Egypt is still moving, but through the longer Cape of Good Hope route. This has significantly increased freight and insurance costs, reducing profit margins for exporters.
President William Ruto said earlier that tea exports were performing well, noting that 81% of tea offered at auction in March was exported, up from 75% a year earlier.
However, Omuga said the figure reflects auction sales between January and March 2026, not actual shipments leaving the country, warning that the situation on the ground is worsening.
“The reality on the ground does not show a positive outlook,” he said.
Kenya exports an average of 100 million kilograms of tea annually to Middle East markets, making the disruption a major concern for the sector.
The industry is also still recovering from earlier geopolitical shocks. Exports to Russia dropped from 29 million kilograms before the Ukraine war to about 5 million kilograms.
Industry stakeholders are now urging the government to expand into new markets within Africa to cushion the sector from global trade disruptions.
