Middle East conflict disrupts Kenya’s tea exports to Iran

NAIROBI, Kenya (MNTV) — Kenya’s tea industry faces growing uncertainty as escalating conflict in the Middle East disrupts supply chains to Iran and other Gulf markets.

Joint U.S.-Israeli strikes over the weekend killed Iran’s Supreme Leader Ayatollah Ali Khamenei, prompting Iranian retaliation, including attacks on ships near the Strait of Hormuz.

The violence has led to partial airspace closures over Iran, Iraq and parts of the Gulf, along with warnings about commercial maritime traffic.

Airlines and freight operators have suspended or rerouted services due to safety concerns and withdrawn war-risk insurance coverage. These changes threaten timely delivery of perishable goods like tea and coffee.

Tea remains Kenya’s top agricultural export. In 2024, the country shipped about 13 million kilograms to Iran, valued at 4.26 billion Kenyan shillings (approximately $43 million), according to the Tea Board of Kenya.

Coffee, tea and spices made up more than 90% of Kenya’s total exports to Iran that year, totaling roughly $45 million out of $50.8 million overall.

Iran ranks among Kenya’s top 10 tea importers.

While Pakistan holds the largest share at 34.7% of export volume, Gulf states including the UAE, Egypt and Iran serve as important secondary markets that help absorb surplus production.

Logistics challenges are mounting.

Disruptions in the Strait of Hormuz,  a chokepoint for about 20% of global oil shipments,  have driven up freight rates, extended transit times and increased insurance premiums. Kenyan exporters, who already operate on narrow margins, risk losing competitiveness to rivals in India and Sri Lanka.

The crisis also carries indirect effects through energy costs.

Kenya imports most of its refined petroleum from Gulf producers such as Saudi Arabia, the UAE, Iraq and Kuwait. Much of this fuel passes through the affected Strait or airspace before reaching Mombasa.

Rising global oil prices and shipping expenses could push up domestic fuel and transport costs, adding pressure to tea production, processing and distribution.

Kenya exported tea to 96 markets in 2024, up from 92 the previous year, providing some diversification buffer. Still, reliable access to Gulf buyers remains vital, especially for premium varieties sensitive to delays.

Kenya and Iran had been discussing expanded agricultural trade for 2025-26, including meat and horticultural products.

Those plans now face delays amid the uncertainty.

For the immediate term, exporters must manage volatile routes, elevated costs and quality risks.

With no quick de-escalation in sight, the outcome for Kenyan tea shipments depends heavily on developments in the Middle East.