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Home » Business & Economy » US-Israel war with Iran disrupts Kenya exports, meat and tea traders count losses
Business & Economy

US-Israel war with Iran disrupts Kenya exports, meat and tea traders count losses

Michael WandatiBy Michael WandatiMarch 4, 20264 Mins ReadNo Comments
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US-Israel war with Iran disrupts Kenya exports, meat and tea traders count losses
Benjamin Netanyahu, Donald Trump and Ali Khamenei.

NAIROBI, Kenya — Although the conflict between Israel and Iran is unfolding more than 7,000 kilometres away, its economic aftershocks are being felt sharply in Kenya’s export sector.

Meat exporters say flight disruptions to key Gulf destinations have left consignments stranded, wiping out expected Ramadan-season gains.

Gulf markets, including the United Arab Emirates, Saudi Arabia and Qatar, are major buyers of Kenyan chilled meat, particularly during peak religious demand periods.

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Meat exports stall

At the centre of the crisis is the suspension and rerouting of cargo flights serving the Middle East corridor following heightened regional hostilities and airspace restrictions.

According to the Kenya Meat Livestock Exporters Industry Council (KEMLEIC), slaughter operations have been halted as cold storage facilities reach capacity.

“Any meat that we slaughtered on Friday and Saturday has not left the country and we have not been able to slaughter meat from Monday to date. And we are looking at a loss of about Ksh.1 billion for the five days that we have not been able to slaughter,” stated Nicholus Ngahu, CEO KEMLEIC.

Exporters say limited transit infrastructure at airports has compounded the disruption.

“On Saturday, we had one flight, but it unfortunately returned back. When we have a situation, we are forced to return the meat to the slaughterhouse, because we only have transit sheds at the airport,” stated Dennis Muraya, Director Konza Clearing Agency.

On Wednesday afternoon, a cargo plane departed from Jomo Kenyatta International Airport (JKIA) carrying 60 tonnes of meat, the first such shipment since the weekend. However, exporters warn that freight costs have surged dramatically.

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“The aircraft that has just left a few minutes ago, has carried 60 tonnes of meat, and it is the only one we have had since Saturday. We need the government to intervene,” stated Dennis Muraya, Director Konza Clearing Agency.

“You’ll find the freight cost either doubling or tripling because of the situation,” stated Dennis Muraya, Director Konza Clearing Agency.

Industry analysts note that air cargo premiums typically spike during geopolitical crises due to insurance surcharges, fuel price volatility and restricted airspace corridors. The Gulf remains a critical destination for Kenya’s livestock exports, particularly halal-certified meat.

Tea sector raises alarm

The disruption could extend beyond the meat industry. The East African Tea Traders Association (EATTA) has warned that prolonged instability in the Gulf could significantly erode tea exports — one of Kenya’s top foreign exchange earners.

“We will lose 20-25 per cent of our tea market in the Middle East if the war continues,” stated George Ouna, Director EATTA.

The Middle East accounts for a substantial share of Kenyan tea shipments, with the UAE serving as a key re-export hub. Any sustained decline in orders could affect auction prices at the Mombasa Tea Auction, where global buyers source bulk supplies.

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Aviation adjustments

Meanwhile, Kenya Airways has announced repatriation flights between Nairobi and Dubai after limited operations resumed at Dubai International Airport.

The airline said outbound flights from Nairobi began on Wednesday, with return services from Dubai resuming on Thursday.

Also Read: Kenya Airways announces repatriation flights to and from Dubai

The announcement follows reports that the United States and Israel have intensified military operations targeting Iranian positions, with drone activity reported across parts of the Gulf region.

Several international carriers have rerouted flights to avoid affected airspace.

Broader economic exposure

Kenya’s export exposure to the Middle East has grown steadily over the past decade, particularly in horticulture, tea and meat products.

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The Gulf region serves both as a final market and as a logistics hub for onward distribution to Asia and Europe.

Economists caution that if the conflict persists, Kenya could face:

  • Reduced export volumes
  • Higher freight and insurance costs
  • Pressure on foreign exchange earnings
  • Short-term job losses within export-linked value chains

While diplomatic efforts to stabilise the region continue, Kenyan exporters say urgent government intervention, including temporary freight subsidies or diplomatic engagement to secure cargo corridors, may be necessary to cushion the sector.

For now, traders remain in a holding pattern, watching events in the Middle East while stockpiles accumulate at home.

Gulf airspace restrictions Gulf markets Iran Iran conflict Iran conflict aviation impact Iran conflict escalation Iran nuclear facilities attack Iran nuclear strikes Iran retaliation in Gulf Iran strikes in UAE Iran-Israel conflict Iran-Israel war updates Iran-Israel-US tensions JKIA cargo JKIA cargo disruption Kenya Airways (KQ) Kenya Airways Dubai flights Kenya exports Kenya meat export losses Kenya tea Middle East market Meat industry Tea trade
Michael Wandati
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Michael Wandati is an accomplished journalist, editor, and media strategist with a keen focus on breaking news, political affairs, and human interest reporting. Michael is dedicated to producing accurate, impactful journalism that informs public debate and reflects the highest standards of editorial integrity.

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