The disruption of shipping routes due to the Iran War has caused a halt to tea exports and farmers' incomes.

George Omuga said that since March 1, losses have been accumulating at a rate of $8 million per a week.

Omuga said that the conflict in the Middle East had a negative effect on this auction.

He said that no tea was being exported to the Middle East which accounts for between 20 and 25 percent of Kenya's total tea exports. Buyers were also reducing their purchases because even the stock they already purchased wasn't moving.

The war has caused widespread 'disruption' to global shipping. Major carriers have suspended movements through the Strait of Hormuz, Bab el-Mandeb Strait and rerouted vessels around Africa. They also sent?ships to the Gulf for shelter, and imposed emergency surcharges throughout the region.

On Monday, President William 'Ruto said that despite the disruptions, tea exports performed well. 81% of teas offered for auction were exported in March, compared to 75% one year earlier.

Omuga stated that the 81% figure mentioned by Ruto was referring to purchases made between January and march 2026 and not actual exports. He also said that the situation in the field is worsening, as the logistics bottlenecks are deepening.

He said: "Government statements are only to comfort people, but the reality on the grounds does not show an optimistic outlook." The spokesperson of?Ruto’s office didn't respond to messages or calls requesting comments.

Omuga stated that Kenya exports a total of?100 million?kilograms?of tea to Middle East markets annually.

He said that tea destined for Pakistan or Egypt still moved, but via a 'longer route' around Cape of Good Hope. This increased freight and insurance costs, and squeezed exporters’ margins.

Omuga stated that the industry was already in a state of shock from previous geopolitical events.

He said that before the Ukraine war, Russia imported 29 million kilograms of Kenyan tea. This has now dropped to 5 million kilograms. The sector and government must develop new markets in Africa to protect the industry from global turmoil. (Reporting and writing by Mukelwa?Hlatshwayo, Vincent Mumo Nzilani, Ammu Kannampilly, Arun Koyyur).

(source: Reuters)