Disruptions to global shipping routes linked to the Iran conflict have left about eight million kilograms of tea stranded for weeks in warehouses in Mombasa, Kenya’s main port city, putting pressure on export earnings and farmers’ incomes, according to the East Africa Tea Traders Association.
George Omuga, managing director of the association that oversees the Mombasa tea auction, said losses have been mounting since March 1 at a rate of about $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.
He explained that no tea shipments are currently heading to the Middle East, a region that normally takes 20–25% of Kenya’s tea exports. Buyers are also cutting back purchases because even previously bought stock is not being shipped.
The conflict has disrupted global shipping, with major carriers halting routes through the Strait of Hormuz and Bab el-Mandeb Strait.
Ships are being rerouted around Africa, some vessels in the Gulf are being held back for safety, and emergency surcharges have been introduced across the region.
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President William Ruto said on Monday that tea exports were still performing well despite the disruption, noting that 81% of tea offered at auction in March was exported, compared to 75% a year earlier.
However, Omuga disputed this, saying the 81% figure reflects purchases made between January and March 2026, not actual exports. He added that conditions on the ground are worsening as logistical challenges continue to build.
“Government’s statements are just to give people comfort, the reality on the ground does not show a positive outlook,” he said. A spokesperson for Ruto’s office did not respond to requests for comment.
Kenya typically exports around 100 million kilograms of tea annually to Middle Eastern markets. While shipments to Pakistan and Egypt are still ongoing, they are now being routed around the Cape of Good Hope, which significantly increases freight and insurance costs and reduces exporters’ margins.
Omuga noted that the sector is already under strain from earlier global tensions. Before the Ukraine war, Russia imported 29 million kilograms of Kenyan tea, but that figure has since dropped to 5 million kilograms.
He said both the industry and the government need to explore new markets within Africa to reduce reliance on unstable global routes and protect the sector from future disruptions.
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Image Credit: Market Screener
