The disruption, caused by the Iran war, has left the tea stuck at the port city of Mombasa, impacting export earnings and farmers’ incomes, according to the country’s Tea Traders Association.
The association said that since March 1, losses have been piling up at a rate of $8 million per week.
“The current conflict in the Middle East has had a direct and negative impact on this auction,” Reuters quoted George Omuga, Managing Director of the association, as saying.
Buyers are scaling back purchases because the stocks they had already bought are not moving, he added.
The war involving Israel, the US, and Iran has led to the near-closure of the Strait of Hormuz, one of the world’s most critical shipping routes.
William Ruto said on Monday that tea exports were performing well despite ongoing disruptions, noting that 81% of tea offered at auction in March had been exported, up from 75% a year earlier.
However, Omuga clarified that the 81% figure referred to purchases made at auction between January and March 2026, not actual exports. He warned that conditions on the ground were worsening as logistical bottlenecks intensified.
Kenya exports an average of 100 million kilograms of tea annually to markets in the Middle East, according to Omuga. While shipments to Pakistan and Egypt are still ongoing, they are now being routed around the Cape of Good Hope, resulting in higher freight and insurance costs and reduced profit margins for exporters.
Omuga added that the industry was already under strain from earlier geopolitical shocks. Before the Russia-Ukraine War, Russia imported about 29 million kilograms of Kenyan tea annually, but that figure has since dropped to 5 million kilograms. He emphasized the need for both the government and industry stakeholders to explore new markets within Africa to help cushion the sector against ongoing global disruptions.
