NAIROBI, Kenya — Kenya is losing about Sh300 million every week in agricultural exports due to the ongoing conflict in the Middle East, Agriculture Cabinet Secretary Mutahi Kagwe has said.
Speaking during a press briefing on Thursday, Kagwe said the escalating hostilities involving the United States and Israel with Iran have disrupted trade routes and export flows to the region, one of Kenya’s key markets for agricultural products.
“There are some products that are already starting to be impacted. For example, we send to the Middle East about Sh300 million worth of meat every week,” Kagwe said.
He added that Kenya’s tea exports have also been affected because part of the country’s tea distribution chain serving Middle Eastern markets operates through Dubai in the United Arab Emirates.
“We have also been sending other food products to Iran, such as our distribution point for tea in Dubai, where we mix some of our tea, particularly for some of the Middle East countries,” he said.
Kagwe said the government has begun searching for alternative markets to absorb the affected exports while working to cushion farmers and exporters from potential long-term economic losses.
According to the Cabinet Secretary, a government team has already been formed to assess the impact of the crisis and recommend strategies to protect Kenya’s agricultural sector and export earnings.
“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.
The disruptions follow an escalation of hostilities that began on February 28 after the United States and Israel launched strikes targeting strategic sites in Tehran, triggering retaliatory attacks by Iran and heightening tensions across the Middle East.
The conflict has affected key trade and transport routes, including the strategic Strait of Hormuz, one of the world’s most important oil shipping corridors.
Roughly 20pc of global oil supply passes through the narrow waterway, making it highly sensitive to geopolitical instability.
The escalating tensions have already rattled global energy markets, with crude oil prices reportedly surging above $100 per barrel, equivalent to more than Sh12,900, amid fears of prolonged supply disruptions.
Market reports earlier this week indicated crude oil prices jumped by about 30 P.c, while Brent crude rose roughly 26 P.c following the escalation.
Other refined fuel products also recorded increases, with heating oil rising 22 P.c and gasoline prices climbing about 14 P.c.
The government says it will continue monitoring developments while seeking new export destinations to protect the country’s agricultural trade and maintain market stability.
