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.

관련 기사

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.

AI에 의해 보고됨

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.

중동 전쟁으로 촉발된 세계적 유가 위기 속에서 미국 수입업체들이 홍콩 기업에 대한 주문을 줄이고 단기 계약으로 전환하고 있습니다. 재계 지도자들은 수익 마진이 감소하고 유동성이 악화되고 있다고 경고하며, 시장 리스크를 다변화하기 위해 정부가 중앙아시아 및 아세안 국가들과의 관계를 강화할 것을 촉구했습니다. 행정회의 의원인 제프리 람 킨풍은 이번 상황이 중소기업의 현금 흐름에 타격을 줄 것이라고 말했습니다.

AI에 의해 보고됨

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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