Kenya to lose over $2m weekly as Mideast conflict disrupts farm exports

Kenya is set to lose more than $2.32 million in weekly agricultural export earnings as escalating conflict in the Middle East disrupts trade flows, authorities have warned.

Speaking during a news briefing on Thursday, Kenya's Agriculture Cabinet Secretary Mutahi Kagwe said shipments of meat and other animal products to key markets in the Middle East have already been affected by heightened tensions involving Iran, Israel and the United States.

He noted that Kenya's tea distribution chain through Dubai in the United Arab Emirates has also been disrupted. The Dubai Multi Commodities Centre acts as a blending and redistribution hub for Kenyan tea supplied to several Middle Eastern countries.

He said regional insecurity has resulted in airspace restrictions and delays in shipping routes, slowing cargo movement and complicating deliveries of perishable goods such as fresh meat, fruits and vegetables.

Kagwe said the government has established a multi-agency team to assess the impact of the conflict and explore alternative markets to cushion farmers and exporters from prolonged losses.

"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 said.

He described the tensions linked to the Iran conflict as avoidable, warning that the effects of the war could spread beyond the region and affect other economies. He stressed the need for quick action to shield Kenya's agricultural sector from possible economic shocks.

Kenya exports a wide range of agricultural products to the Middle East, including tea, coffee, flowers, meat, fruits and vegetables, making the region one of the country's most significant trading partners.

The latest escalation follows weeks of military exchanges and rising geopolitical tensions in the Gulf region, which have unsettled global logistics networks and raised concerns over potential economic spillovers to trade-dependent economies.

Earlier this week, Kenya's Trade Cabinet Secretary Lee Kinyanjui also cautioned that the conflict could disrupt the supply of critical raw materials needed by local manufacturers, prompting authorities to review contingency measures to safeguard production and stabilize the economy.

Kinyanjui said the tensions may lead to shortages of key raw materials required by factories across the country.

"These are issues caused by factors far beyond our control, but they have significant implications for our industries and the wider economy," he noted.