Audio By Carbonatix
Disruption to shipping routes linked to the Iran war has left about eight million kilograms of tea stuck in warehouses in Kenya's port city of Mombasa for weeks, threatening export earnings and farmer incomes, the head of the East Africa Tea Traders Association said.
George Omuga, managing director of the association that runs the Mombasa tea auction, said losses since March 1 have piled up to $8 million per week.
"The current conflict in the Middle East has had a direct impact, a negative impact on this auction," Omuga told Reuters.
No tea was currently leaving for the Middle East, which accounts for 20-25% of Kenya's tea exports, while buyers were also scaling back purchases because even the stocks they had already bought were not moving, he said.
The war has led to widespread disruption to global shipping, with major carriers suspending movements through the Strait of Hormuz and the Bab el-Mandeb Strait, rerouting vessels around Africa, sending ships in the Gulf to shelter, and imposing emergency surcharges across the region.
President William Ruto had said on Monday that tea exports were performing well despite the disruption, with 81% of tea offered for auction exported in March, up from 75% a year ago.
Omuga said the 81% figure cited by Ruto referred to purchases made at the auction between January and March 2026, not actual exports, and said the situation on the ground was worsening as logistics bottlenecks deepened.
"Government's statements are just to give people comfort, the reality on the ground does not show a positive outlook," he said. The spokesperson for Ruto's office did not respond to calls or messages requesting comment.
Kenya exports an average of 100 million kilograms of tea annually to Middle East markets, Omuga said.
Tea destined for Pakistan and Egypt was still moving, but only via the longer route around the Cape of Good Hope, driving up freight and insurance costs and squeezing exporters' margins, he said.
The industry was already reeling from earlier geopolitical shocks, Omuga said.
Before the Ukraine war, Russia imported 29 million kg of Kenyan tea, but that has since dropped to 5 million kg, he said, adding that the sector and the government needed to develop new markets within Africa to cushion the industry against global turmoil.
Latest Stories
-
Dr Abena Nyarkoa to join panel discussion at Africa Together Conference in Cambridge
3 hours -
Walmart warns US shoppers are cutting spending as higher petrol prices bite
3 hours -
Flexible exchange rate regime critical in absorbing external shocks – First Deputy Governor
3 hours -
Toilets and changing rooms must be used on basis of biological sex, guidance confirms
3 hours -
Emily in Paris to end after sixth season, says Netflix
3 hours -
Angry crowd sets Ebola hospital tents on fire in DR Congo
4 hours -
Russia and China condemn US over indictment of former Cuban leader
4 hours -
Bank of Ghana reverts to previous Cash Reserve Ratio policy after scrapping it last year
4 hours -
Ghana-eligible defender Beres Owusu signs permanent deal with Grazer AK
4 hours -
A Super El Niño is coming: What does it mean for Ghana?
4 hours -
Driving Schools Association pushes for mandatory driver training to reduce road crashes
4 hours -
Climate change exists with or without humans — Youth advocate
5 hours -
Plastic waste driving flooding and climate concerns in Bamaahu — Youth Climate Reporter
5 hours -
This week on The Career Trail
5 hours -
My book was born out of university research – Mary Anane Awuku
5 hours