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.
In a press briefing on March 12, 2026, Agriculture Cabinet Secretary Mutahi Kagwe stated that the conflict between the US and Israel against Iran has disrupted Kenya's exports to the Middle East, a major market for meat and tea. "There are some products that are already starting to be impacted, for example, we send to the Middle East, about Ksh 300 million worth of meat every week," Kagwe said. Additionally, Kenya sends other food products to Iran, and uses Dubai as a distribution point for tea blended for Middle Eastern countries.
The government has assured that it has initiated the process of finding alternative markets to replace the affected ones as soon as possible. A team has been formed to assess the situation and strategize ways to cushion the agriculture sector and exports from severe economic impacts. "There are also other markets that have arisen as a result of the situation, and we believe that we will be able to cater to other markets and replace those ones that are currently in conflict," Kagwe added.
The conflict began with a US and Israel attack on strategic targets in Tehran on February 28, 2026, prompting Iranian retaliatory strikes and the closure of key trade routes and airspaces. This instability could lead to prolonged supply disruptions, driving energy prices higher and increasing costs for businesses and consumers worldwide. Global oil prices have jumped to over Ksh12,900 per barrel following the conflict, attributed to disruptions in Iran's Strait of Hormuz, through which about 20 percent of the world's oil consumption passes. On March 9, crude oil prices rose by about 30 percent, Brent crude by roughly 26 percent, heating oil by 22 percent, and gasoline by around 14 percent.
