Agriculture Cabinet Secretary Mutahi Kagwe has revealed that Kenya is losing significant revenue weekly due to the ongoing conflict in the Middle East. In a briefing on Thursday, March 12, Kagwe explained that the escalation between the U.S. and Israel with Iran has disrupted exports of key agricultural products.
Kenya’s largest markets for meat and tea, located in Middle Eastern countries, have been particularly affected, leading to major economic setbacks for farmers and exporters across the country.
Kagwe said meat exports alone are already being heavily impacted, with losses reaching hundreds of millions of shillings weekly. He also highlighted the disruption of tea exports, including shipments processed through distribution points in Dubai, which cater to several Middle Eastern markets.
The CS stressed that the conflict has not only affected immediate exports but also threatens long-term trade relationships if alternative markets are not secured quickly.
To mitigate the economic impact, the government has formed a task force to assess the situation and explore strategies to replace affected markets. Kagwe assured that efforts are underway to identify new markets for both meat and tea to ensure that the sector remains stable.
He emphasised that alternative trading opportunities have already emerged and that the government is committed to cushioning the agriculture sector from further losses.
The conflict escalated after U.S. and Israeli forces launched attacks on strategic targets in Tehran on February 28, 2026, prompting retaliatory strikes by Iran. This has led to the closure of major trade routes and airspaces in the region, further complicating exports from Kenya and other countries.
Analysts warn that continued instability in Iran and surrounding regions could prolong supply chain disruptions, driving energy prices higher and raising costs for businesses and consumers globally. Recent reports indicate that global oil prices have surged past $100 per barrel, exceeding Ksh12,900, further straining the cost of exports and domestic economic stability.
Kagwe concluded that the government remains proactive in finding alternative markets and strategic solutions to limit the economic fallout from the conflict, while keeping the agriculture sector resilient during these uncertain times.
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