Kenya is losing about Ksh300 million every week as the ongoing conflict in the Middle East continues to disrupt key export markets, Agriculture Cabinet Secretary Mutahi Kagwe has said.
Speaking during a press briefing on Thursday, Kagwe explained that the tensions involving Iran, Israel, and the United States have started affecting Kenya’s agricultural exports, particularly meat and tea, which are largely sold in Middle Eastern markets.
According to the CS, Kenya exports meat products worth about Ksh300 million every week to the region, but the current situation has slowed trade and disrupted supply chains.
“There are some products that are already starting to be impacted. For example, we send to the Middle East about Ksh300 million worth of meat every week,” Kagwe said.
He added that tea exports have also been affected. Kenya usually ships tea to the region through Dubai, where part of it is blended before being distributed to different countries in the Middle East.
Kagwe said the government has already started looking for alternative markets to absorb the affected products in case the conflict continues.
“We are exploring other markets that may have opened up as a result of the situation so that we can replace the ones currently affected by the conflict,” he said.
The government has also formed a team to closely monitor the situation and come up with strategies to protect the country’s agricultural sector and export earnings from further losses.
The conflict escalated after the United States and Israel launched attacks on strategic targets in Tehran on February 28. Iran later responded with retaliatory strikes, raising tensions across the region and affecting key trade routes and airspaces.
The instability has also pushed global oil prices higher, increasing the cost of fuel and transport around the world.
Recent reports indicate that global oil prices have crossed $100 per barrel, with analysts linking the rise to disruptions in shipments through the Strait of Hormuz, one of the world’s most important oil transport routes.
About 20 per cent of the world’s oil supply passes through the strait, meaning any disruption can quickly affect global markets.
Since the conflict began, crude oil prices have reportedly risen by around 30 per cent, while Brent crude has increased by about 26 per cent. Other fuel products such as heating oil and gasoline have also recorded sharp price increases.