Kenya's Tea Industry Loses £6.4 Million Weekly as Iran Conflict Blocks Key Export Routes
Mombasa, 1 April 2026
Middle East tensions have trapped eight million kilograms of Kenyan tea at Mombasa port, costing the industry £6.4 million weekly since March. The conflict has completely halted shipments to Middle Eastern markets, which typically account for 25% of Kenya’s tea exports. Major shipping carriers are avoiding the Strait of Hormuz and Bab el-Mandeb, forcing costly rerouting around Africa’s Cape of Good Hope. This crisis compounds earlier losses from the Ukraine war, which reduced Russian tea imports from 29 million to just 5 million kilograms annually. The disruption threatens farmer incomes and export earnings crucial to Kenya’s economy.
Mounting Losses at Mombasa Port
The scale of disruption becomes clear when examining the figures provided by George Omuga, managing director of the East Africa Tea Traders Association, which operates the Mombasa tea auction [1]. Since 1 March 2026, losses have been accumulating at a rate of $8 million per week, with approximately eight million kilograms of tea now stranded in warehouses at Kenya’s primary port [1]. This represents a substantial portion of Kenya’s tea export capacity, as the country typically exports an average of 100 million kilograms annually to Middle East markets alone [1]. The blockage affects not only immediate sales but also future purchasing decisions, as buyers are scaling back their acquisitions because existing purchased stock cannot be transported from the port [1].
Complete Halt to Middle Eastern Routes
The Iran conflict has created an unprecedented situation where no tea is currently leaving Kenya for Middle East destinations, which historically account for 20-25% of the country’s total tea exports [1]. Major shipping carriers have suspended movements through critical maritime chokepoints including the Strait of Hormuz and the Bab el-Mandeb Strait, forcing vessels to seek alternative routes or shelter in Gulf ports whilst imposing emergency surcharges across the region [1]. This complete halt represents a dramatic shift from normal operations and underscores the vulnerability of Kenya’s export-dependent economy to regional conflicts thousands of kilometres away.
Government Optimism Contradicts Ground Reality
A significant disconnect has emerged between official government statements and industry assessments of the situation. President William Ruto stated on Monday that tea exports were performing well despite disruptions, citing that 81% of tea offered for auction was exported in March, an increase from 75% a year earlier [1]. However, Omuga clarified that this 81% figure refers to purchases made at auctions between January and March 2026, not actual physical exports from the country [1]. ‘Government’s statements are just to give people comfort, the reality on the ground does not show a positive outlook,’ Omuga explained, emphasising that logistics bottlenecks were deepening rather than improving [1].
Broader Economic Implications and Alternative Routes
The current crisis compounds earlier geopolitical shocks that have already reshaped Kenya’s tea export landscape. Before the Ukraine conflict began, Russia imported 29 million kilograms of Kenyan tea annually, but this figure has plummeted to just 5 million kilograms [1]. Tea shipments to Pakistan and Egypt continue to move, but only via the significantly longer route around the Cape of Good Hope, which substantially increases freight and insurance costs whilst squeezing exporters’ profit margins [1]. Industry leaders are calling for urgent development of new markets within Africa to provide a buffer against future global disruptions, recognising that Kenya’s tea sector cannot continue to absorb such substantial external shocks without diversifying its customer base [1].