Disruption to key shipping routes caused by the ongoing Iran conflict has left around eight million kilograms of Kenyan tea stranded in warehouses in Mombasa for weeks. The situation is threatening export earnings and the livelihoods of tea farmers across the country.
Pakistan is the world’s largest importer of tea, with Kenya as its primary supplier, accounting for over 80% of its total tea imports. As of 2024, Pakistan imported approximately$553 million to $557 million worth of tea from Kenya annually. This trade volume represents nearly 190,000 to over 200,000 tonnes of tea annually.
Middle East Market Paralysed
No tea is currently being shipped to the Middle East, which normally accounts for 20-25% of Kenya’s tea exports. Buyers have also scaled back new purchases because even previously bought stocks are not moving due to maritime bottlenecks. The East Africa Tea Traders Association, which runs the Mombasa tea auction, reported that losses have reached about $8 million per week since early March.
Rising Costs and Longer Routes
Tea destined for Pakistan and Egypt continues to move but only via the much longer route around the Cape of Good Hope. This rerouting has sharply increased freight and insurance costs, squeezing exporters’ margins. Major shipping carriers have suspended operations through the Strait of Hormuz and Bab el-Mandeb Strait, imposed emergency surcharges, and diverted vessels, worsening the logistics crisis.
The Kenyan tea industry was already facing challenges from earlier global shocks, including a sharp drop in exports to Russia following the Ukraine war — from 29 million kg previously to just 5 million kg now.
Calls for New Markets and Urgent Action
George Omuga, managing director of the East Africa Tea Traders Association, warned that the sector needs to urgently develop new markets within Africa to reduce vulnerability to international conflicts. He described government statements claiming strong export performance as overly optimistic, noting that the 81% auction figure cited by President William Ruto referred to purchases rather than actual shipments.
Industry players fear prolonged disruption could severely impact small-scale farmers who depend on tea for their income.