Kenya’s KSh300 million exports threatened by Middle East war

Kenya’s agricultural exports worth about KSh300 million weekly to the Middle East have been disrupted by the ongoing conflict in the region, Agriculture Cabinet Secretary Mutahi Kagwe has warned.

The escalating tensions involving Iran and Israel have led to airspace closures and shipping uncertainties that are grounding flights and inflating costs for Kenyan exporters.

Kenyan meat exporters have already incurred losses estimated at KSh1 billion as cargo flights to key destinations were halted. Over 200 tonnes of chilled and frozen meat products, mainly beef and goat meat destined for the United Arab Emirates, Saudi Arabia and other Gulf nations, are now stranded. Daily exports typically range between 125 and 130 tonnes.

Iran ranks among the top importers of Kenyan tea. The East African Tea Traders Association has cautioned that prolonged conflict could result in the loss of up to 25% of the Middle East market for tea.

Shipments to major buyers like Saudi Arabia and the United Arab Emirates also face delays and higher freight and insurance expenses.

The impact extends beyond immediate losses, threatening foreign exchange earnings and jobs in the agriculture sector. Kenya’s total exports to the United Arab Emirates alone were significant in recent years, with agriculture playing a major role. Government officials are assessing alternative routes and markets to cushion the blow.

Kagwe has stressed the need for diversification to build resilience against such external shocks. Farmers and businesses are watching closely, hoping for a swift de-escalation to restore normal trade flows.