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.

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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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