Middle East Conflict Threatens Kenyan Tea Farmers as Sh3 Billion Stock Stranded in Warehouses

Kenyan tea farmers are bracing for a potential crisis this year as conflict in the Middle East disrupts key trade routes. The disruptions are leading to shipping delays and threatening billions in export earnings. An industry official said on Thursday that the tea sector is under increased pressure due to the conflict.

Middle East Conflict Threatens Kenyan Tea Farmers as Sh3 Billion Stock Stranded in Warehouses

Enos Njeru is the chairman of the Kenya Tea Development Agency Holdings. This association brings together over 600,000 smallholder tea farmers through 54 tea factory companies. He said in a statement that the conflict has disrupted key export routes. This has led to shipping delays and increased freight and insurance costs. Rising fuel prices in Kenya are also expected to push up fertilizer costs. Most agricultural inputs are oil-based, and global shipping rates remain elevated.

The Middle East conflict impact on Kenyan tea exports is already visible in warehouses across the country. “Currently, we are holding tea worth over 3 billion shillings in our warehouses due to a lack of shipping capacity, and we fear things could get worse in the coming days,” Njeru said.

Tea Farmers Face Tough Year as Fuel Prices Rise and Shipping Costs Soar

Kenya’s smallholder tea farmers face a tough year ahead as rising fuel prices may squeeze their earnings. The Kenya Tea Development Agency has warned that high fuel prices will negatively impact farmers’ bonuses and overall income in 2026.

Njeru spoke on Wednesday during a labour management training conducted by the Federation of Kenya Employers. He said the tea sector is already reeling from disruptions caused by the Middle East conflict. The conflict has disrupted key export routes, leading to shipping delays and higher freight and insurance costs.

The fuel price hike will drive up the cost of fertiliser expected in June. Many fertiliser components are oil-based, and global shipping rates remain elevated. This comes at a time when the agricultural sector is under significant pressure.

KTDA Board vice chairman Samson Mosonik said labour remains the highest cost in tea production. He called for efficient labour management to boost productivity and protect farmers’ earnings. Njeru urged factory boards and management to implement immediate austerity measures to cut operational costs. They must cushion against the rising fuel prices and global disruptions.

The warnings come amid a record fuel price increase announced this week by the Energy and Petroleum Regulatory Authority. Super petrol and diesel are nearly crossing the Sh200 per litre mark. The Middle East tensions have further complicated export logistics for Kenya’s tea, a vital foreign exchange earner that supports over 700,000 smallholder farmers.

Tea Sector Calls for Government Intervention and Tax Relief

To mitigate the crisis, Njeru called for interventions to cushion farmers. These include lowering taxes on tea, noting that the crop remains heavily taxed. He appealed to the government to reduce taxes on tea, which is one of the most heavily taxed crops in Kenya.

Njeru also called for state interventions to support farmers amid the current economic challenges. He urged factory boards and management to implement immediate austerity measures to cut operational costs. These measures will help cushion farmers against the rising fuel prices and global disruptions.

Kenyan President William Ruto said earlier that while fertiliser supplies are not expected to be disrupted by the conflict, key exports would face challenges in certain markets. Tea is particularly vulnerable because it relies on shipping routes that pass through the Red Sea and the Suez Canal.

The Middle East conflict impact on Kenyan tea exports has highlighted the country’s dependence on these trade routes. Any disruption affects the entire value chain, from farmers to exporters to consumers. Without government intervention, smallholder farmers will bear the brunt of these global shocks.

Tea Remains a Vital Foreign Exchange Earner for Kenya

Tea is one of Kenya’s top foreign exchange earners. The East African nation earned 218.79 billion shillings from the crop in 2025. This represents a significant contribution to the national economy. The sector supports over 700,000 smallholder farmers directly. Millions more depend on tea indirectly through transport, processing, and marketing.

The Middle East conflict impact on Kenyan tea exports threatens this vital source of foreign exchange. If shipping delays continue, Kenya may lose its competitive edge in key markets. Buyers may turn to other suppliers who can deliver reliably. This would have long-term consequences for the industry.

KTDA represents over 600,000 smallholder farmers through 54 tea factory companies. These farmers depend on tea for their livelihoods. They invest in inputs, labour, and care throughout the year. When tea cannot be shipped, their earnings are delayed. When fuel prices rise, their production costs increase. When fertiliser becomes expensive, their yields suffer.

The current crisis is a reminder of how vulnerable Kenya’s agricultural exports are to global events. The country has made progress in diversifying its markets, but tea remains heavily dependent on traditional routes through the Middle East. The conflict has exposed this vulnerability.

Farmers and Industry Leaders Call for Long-Term Solutions

Industry leaders are calling for long-term solutions to reduce Kenya’s exposure to global shocks. These include investing in alternative shipping routes, expanding storage capacity, and diversifying export markets. They also include reducing the sector’s dependence on imported inputs like fertiliser.

Local production of fertiliser could help insulate farmers from global price spikes. Kenya has natural resources that could support fertiliser manufacturing. However, this requires investment and policy support. In the meantime, farmers must cope with higher costs and delayed payments.

Njeru said the tea sector is resilient, but it cannot withstand repeated shocks. The COVID-19 pandemic disrupted supply chains. The war in Ukraine drove up fertiliser and fuel prices. Now the Middle East conflict is blocking export routes. Each crisis erodes farmers’ incomes and threatens their livelihoods.

The Middle East conflict impact on Kenyan tea exports is not just an economic issue. It is a human issue. Millions of families depend on tea for school fees, medical care, and daily meals. When tea cannot be sold, these families suffer. The government and industry leaders must work together to find solutions.

Njeru said farmers need immediate relief and long-term strategies. Lower taxes would provide immediate relief. Austerity measures would reduce costs. Investment in storage would allow farmers to wait out disruptions. Diversification of markets would reduce dependence on any single route. These are the steps needed to protect Kenya’s tea sector for the future.

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