Kenya's livestock exports hit by Middle East conflict, losing Sh250M weekly: update

One month into disruptions from the Middle East conflict, Kenya is losing Sh250 million weekly in livestock and meat exports to Gulf markets, with total losses exceeding Sh1 billion, Finance Minister John Mbadi told parliament.

The conflict, which began with US and Israeli strikes on Iran on February 28, 2026, has severely impacted Kenya's key export destinations. Speaking to the National Assembly's Finance and Planning Committee on April 4, Mbadi stated that Gulf Cooperation Council (GCC) markets account for 85% of Kenya's livestock exports and 69% of meat exports.

"Disruptions have caused losses of about Sh250 million weekly, with six approved slaughterhouses operating at very low capacity," he said. This follows earlier reports in March of around Ksh300 million weekly losses across meat and other products, as noted by Agriculture Cabinet Secretary Mutahi Kagwe.

Domestically, excess livestock has driven down prices for nomadic pastoralists, reducing incomes for thousands of families. Kenya has 22 million cattle, 23 million sheep, 35 million goats, and 4.3 million camels, producing 607,000 tons of red meat annually against demand of 800,000 tons.

The government is seeking alternative markets in the European Union, China, the US, and other African countries, while investing in cold storage infrastructure. The Ministry of Livestock Development noted Kenya has not fully leveraged trade agreements with Arab nations.

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Dramatic composite image depicting Strait of Hormuz oil tanker explosion from US-Israeli strikes on Iran alongside Indian stock market crash amid surging oil prices.
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Middle East Conflict: Tuesday Market Losses Mount as Oil Surges Continue

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Following US and Israeli strikes on Iran that killed Supreme Leader Ali Khamenei and prompted Strait of Hormuz disruptions, oil prices rose nearly 8% amid ongoing tensions. Indian markets shed Rs 6.35 lakh crore on Tuesday, with the rupee weakening on supply fears. Globally, the dollar strengthened as a safe haven while the yen and euro weakened.

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.

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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.

The European Union removed Brazil from its list of countries compliant with sanitary rules on antibiotic use in livestock. The measure, effective from September, could cost the country nearly US$ 2 billion in annual meat sales.

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President William Ruto has announced government measures to protect Kenyans from the impact of the Middle East conflict on fuel supplies. He highlighted a government-to-government fuel procurement deal cushioning price shocks and sufficient fertiliser stocks through September. He also pointed to growth in the tea sector and port activities.

Ethiopia's Ministry of Agriculture has urged the public to exercise caution when consuming meat and offal products during Eid al-Adha. Desk head Ato Asmelash Berhe noted that the quantity reaching markets is low compared to production. He highlighted quality issues during peak slaughter periods.

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The Ministry of Agriculture and Land Reclamation announced it issued 916 operating licenses for livestock, feed, poultry projects, and milk collection centers in February. These included 264 permits for cattle rearing by small breeders, compliant with biosecurity standards. Funding of EGP 297.36 million was disbursed to support the presidential 'Haya Karima' initiative.

 

 

 

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