The exports of Kenyan tea to key markets in Europe and North Africa has been disrupted by the increasing attacks of ships by terror groups along the Red Sea route.
In a statement on Wednesday, March 19, the Tea Board of Kenya (TBK) said the attacks have forced ships to avoid the route and use longer ones.
TBK said the ships have opted to use the southern tip of Africa, but the journey becomes longer and more expensive.
The Board explained that the issue has created market access challenges for the sector.
“Attacks on vessels along the Red Sea shipping route has prompted several shipping lines to suspend their operations through the route and revert to using the southern tip of Africa, an alternative trans-shipment route, whose shipment duration is much longer and costs more from the Port of Mombasa,” the TBK said.
Kenya’s tea exports increased from 1.39 billion dollars (Ksh194.6 billion) in 2023 to 1.4 billion U.S. dollars (Ksh196 billion) in 2024.
TBK said the slow growth in exports was partly caused by the disruption of terror attacks and the ongoing war in some major markets like Sudan.
Pakistan, Sudan, Egypt, Britain and Yemen are some of the markets that recorded a decline in tea imports from Kenya in 2024.
The Board said it is consolidating and expanding Kenya’s tea markets through trade missions to countries such as the United Arab Emirates, Iran, Turkey, Ghana, Germany and China.
Also Read: Diplomatic Tensions Escalate as Sudan Bans All Imports from Kenya
New Markets in 2024
TBK’s report in August 2024 showed that Kenya recorded an increase in tea exports to non-traditional and emerging markets.
According to the report, Kenya expanded its markets to Chad and South Sudan during the month.
Similarly, there were shipments to seasonal markets such as Bangladesh, Australia, Georgia, Burkina Faso, Kyrgyzstan, Mali, Mexico, Guinea, Cameroon, Togo and Israel.
There was an expansion in exports to emerging markets except Afghanistan, Ireland, Japan, Jordan, Canada and Türkiye.
Also Read: Diplomatic Tension Between Kenya and Somalia as Miraa Farmers Suspend Exports
Price Triples Due to Red Sea Attacks
In March 2024, it was reported that the cost of exporting tea through the Mombasa port nearly tripled due to a shortage of merchant ships.
This was attributed to sustained attacks on vessels transiting through the Red Sea.
Exporters said they now have to wait for up to three weeks more to load cargo as the few operational vessels navigated longer routes around Africa instead of using the Red Sea and the Suez Canal with the extra costs passed to them.
Exporters said they now have to wait up to three more weeks to load cargo as the few operational vessels take longer routes around Africa instead of using the Red Sea and the Suez Canal.
Besides, they decried that the extra costs incurred are passed on to them.
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TBK CEO Willie Kmutai holds discussions with the Stanbic Bank Kenya team on March 17, 2025. PHOTO/TBK.
