Disruptions to global shipping routes linked to the war in Iran have left about 8 million kilograms of Kenyan tea stranded in warehouses at the port of Mombasa, raising urgent concerns about export earnings and the livelihoods of millions of smallholder farmers dependent on the crop. George Omuga, head of the East Africa Tea Traders Association, said the industry has been losing approximately $8 million per week since March due to stalled shipments.
The Middle East, which accounts for up to a quarter of Kenya’s tea exports, has seen a sharp drop in activity, with no cargo currently moving to the region. The conflict has forced major shipping lines to avoid key routes through the Persian Gulf and the Red Sea, leading to significant delays, higher freight costs, and reduced buyer demand. Some vessels have been rerouted around the Cape of Good Hope, adding weeks to transit times and substantially increasing fuel and insurance expenses.
Although President William Ruto has stated that exports remain strong, traders argue that the government’s data reflect past auction sales rather than current shipments. The disconnect between official statements and ground-level realities has created uncertainty for producers and buyers alike, with many contracts now subject to renegotiation or cancellation.
The situation is particularly acute for tea bound for markets like Pakistan and Egypt, which is being rerouted around Africa, increasing costs and further squeezing exporters’ already thin margins. For smallholder farmers who supply the bulk of Kenya’s tea through cooperative structures, the delays translate directly into delayed payments and reduced incomes, with ripple effects across rural economies.
The tea industry is a critical pillar of Kenya’s economy, contributing significantly to export earnings and supporting millions of livelihoods directly and indirectly. Prolonged disruptions could force buyers to seek alternative sources in South America or Asia, potentially eroding Kenya’s market share in key destinations. The government is exploring diplomatic channels to address the shipping constraints, but solutions depend largely on the trajectory of the conflict.
