Ongoing Middle East conflict causes shipping delays for Kenya's exports

One month into disruptions from the Middle East conflict, Trade Cabinet Secretary Lee Kinyanjui warned that Kenya's exports—especially to the key Middle East market worth Ksh164.6 billion—are facing doubled transit times of up to 20 days due to Red Sea and Gulf restrictions, spoiling time-sensitive flowers, coffee, and other goods while hiking freight costs. The government is pursuing alternative routes, port upgrades at Mombasa and Lamu, and market diversification.

In a statement on April 21, Trade CS Lee Kinyanjui highlighted how the conflict—sparked by US and Israel strikes on Iran in late February—has suspended key maritime and air routes, extending sea transit by 10-20 days and air cargo by up to 48 hours. "Freight costs have risen significantly," he noted.

This builds on earlier losses, such as Ksh300 million weekly in meat and tea exports reported in March. Flowers spoil weekly, meat volumes are under 5% of normal, dairy faces issues, and tea prices drop as the region absorbs 35% of sales. Broader routes to Europe, Asia, and North America are affected via Middle East hubs. Remittances from over 400,000 Kenyans in the Gulf are at risk.

Kenya's 2024 exports reached a record Ksh1.1 trillion from horticulture, tea, apparel, and manufacturing. Mitigation efforts include collaborations with airlines and shipping firms for alternatives, infrastructure boosts at Mombasa and Lamu ports, and diversification via EAC, COMESA, TFTA, and AfCFTA to African, Asian, European, and Latin American markets.

ተያያዥ ጽሁፎች

Agriculture Cabinet Secretary Mutahi Kagwe has revealed that Kenya is losing Ksh300 million weekly due to the ongoing Middle East conflict, which has disrupted exports of products like meat and tea. The government has begun seeking alternative markets and formed a team to assess the situation.

በAI የተዘገበ

Kenyan meat exporters are facing significant losses as the Arabian market is disrupted by the Israel-Iran war, particularly during Ramadan. Over 300 tons of meat are stuck in local storage due to suspended flights and doubled shipping costs. The situation also impacts other exports like avocados, coffee, and tea.

US importers have cut orders from Hong Kong firms and shifted to short-term contracts amid a global oil crisis triggered by war in the Middle East. Business leaders warn of eroding profit margins and strained liquidity, urging the government to bolster ties with Central Asia and Asean nations to diversify market risks. Executive Council member Jeffrey Lam Kin-fung said the situation will impact SMEs' cash flow.

በAI የተዘገበ

A fuel price strike that ended on Tuesday revealed Mombasa's heavy dependence on food supplies from outside the county. Major shortages hit Kongowea market, driving up prices for residents and traders.

 

 

 

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