A severe disruption in global shipping routes linked to the ongoing conflict in Iran has left approximately 8 million kilograms of tea stranded in warehouses at Kenya’s port city of Mombasa. The crisis, which has persisted for several weeks, is now threatening the livelihoods of millions and causing massive financial losses for the East African tea industry. The East Africa Tea Traders Association (EATTA), which operates the Mombasa tea auction, reports that the sector is losing money at an alarming rate with losses since early March escalating to an estimated $8 million per week.

Kenyan Tea Stranded in Mombasa

The conflict is striking at the heart of Kenya’s primary export markets, which together represent a combined 65 percent market share. The Middle East, historically a stable buyer accounting for 20 to 25 percent of the auction’s volume, has seen shipments largely stalled. Pakistan, a critical trade partner and neighbor to Iran, traditionally purchases 40 percent of the tea from the auction and is now facing severe disruption. Iran itself, as a significant growth market, had a proposed $40 million tea supply deal intended to diversify Kenya’s reach, but that agreement is now reportedly at risk due to the hostilities.

Widespread disruptions in vital maritime channels, specifically the Strait of Hormuz and the Bab el-Mandeb Strait, have forced exporters to seek alternative logistics. Following the escalation of strikes in late February, major carriers have suspended movements through these key chokepoints. While tea destined for Pakistan and Egypt is still moving, it is being diverted through significantly longer routes. Rerouting vessels around the Cape of Good Hope adds ten to fifteen days to transit times. Such delays have driven up freight charges and triggered a massive escalation in maritime insurance costs, as many providers have withdrawn standard coverage for the region. These added expenses are severely squeezing the profit margins of Kenyan exporters.

The crisis has also sparked a public disagreement between industry leaders and the Kenyan government. While recent reports suggested that tea exports performed well in March, noting that 81 percent of tea offered for auction was sold, EATTA leadership clarified that these figures refer to purchases made at the auction, not actual exports. They warn that the reality on the ground is worsening as logistics bottlenecks prevent the tea from actually leaving the country. The gap between auction sales and physical exports has created a dangerous backlog that continues to grow.

Beyond the corporate losses, the trade bottleneck is creating a humanitarian concern for Kenya’s small-scale farmers. The tea industry is a cornerstone of the Kenyan economy, contributing approximately 4 percent to the national GDP. The sector supports over 600,000 smallholder farmers who rely on timely sales for their daily survival. Local farmers have expressed grave concerns that if the war continues, the disruption will flow directly into rural households. When tea cannot be sold or payments are delayed, families face the prospect of hunger, and children are often forced to drop out of school due to unpaid fees.

Industry experts warn that the crisis underscores Kenya’s over-reliance on traditional markets and bulk exports. Protracted delays carry quality risks for the tea and threaten just-in-time delivery contracts. Tea left in warehouses for extended periods can lose flavor and quality, potentially reducing its value when it finally reaches buyers. Furthermore, these logistical hurdles could weaken Kenya’s competitiveness against other major producers such as Sri Lanka, India, and China, who may not face the same degree of disruption for their specific trade routes.

Kenya typically exports an average of 100 million kilograms of tea annually to Middle Eastern markets. Industry leaders are now calling for an urgent acceleration of market diversification to protect the industry from future global turmoil. Proposals include expanding trade relationships with emerging markets in Africa, Asia, and South America, as well as investing in value-added tea products that could be processed locally before export. The crisis has exposed the vulnerability of Kenya’s tea industry to geopolitical shocks beyond its control, and stakeholders agree that long-term resilience requires a fundamental rethinking of trade strategy. For now, millions of kilograms of tea remain in Mombasa warehouses, waiting for peace to return to the Strait of Hormuz.

https://farmerstrend.co.ke/wp-content/uploads/2026/04/Kenyan-Tea-Stranded-in-Mombasa.jpeghttps://farmerstrend.co.ke/wp-content/uploads/2026/04/Kenyan-Tea-Stranded-in-Mombasa-150x150.jpegFarmersTrendFarming NewsA severe disruption in global shipping routes linked to the ongoing conflict in Iran has left approximately 8 million kilograms of tea stranded in warehouses at Kenya's port city of Mombasa. The crisis, which has persisted for several weeks, is now threatening the livelihoods of millions and causing massive...New Generation Culture in Agriculture