Middle East Crisis Puts Sh164.6 Billion Worth of Kenyan Exports at Risk

Kenya’s export sector is facing mounting pressure from the ongoing Middle East crisis, with goods valued at approximately Sh164.6 billion at risk, Trade Cabinet Secretary Lee Kinyanjui has said.

In a statement issued on Tuesday, April 21, 2026, Kinyanjui noted that the Middle East remains one of Kenya’s most strategic and fastest-growing export markets.

He revealed that the country recorded a historic Sh1.1 trillion in exports in 2024, driven by strong performance in horticulture, tea, apparel and emerging manufacturing sectors.

“Exports remain a key pillar of Kenya’s foreign exchange earnings and overall economic stability,” he said.

However, the crisis has disrupted key global trade routes, posing broader risks to Kenya’s access to markets in Europe, Asia and North America. Restrictions and suspensions along critical maritime and air corridors, particularly through the Red Sea and Gulf routes, have significantly slowed the movement of goods.

According to the CS, transit times have increased by between 10 and 20 days, while freight costs have surged. Air cargo delays of up to 48 hours are also affecting the timely delivery of perishable exports.

The situation has been worsened by rising fuel costs, which account for up to 50 per cent of logistics expenses, further straining exporters.

Kinyanjui said the floriculture sector is already bearing the brunt, with exporters reporting weekly losses due to spoilage and shipment delays. In some cases, export volumes have dropped to below five per cent of normal levels.

The crisis is also expected to impact diaspora remittances, as disruptions in labour markets and logistics affect over 400,000 Kenyans working in Gulf countries, particularly in hospitality, construction and domestic services.

To mitigate the impact, the government is working with Kenya Airways, international airlines and logistics partners to secure alternative cargo routes. Efforts are also underway to enhance efficiency at key entry and exit points, including the Port of Mombasa and Lamu Port, to minimise delays.

Engagements with shipping lines are ongoing to address rising freight and insurance costs.

“The current situation underscores the need to reduce reliance on single transit corridors,” Kinyanjui said.

At the regional level, he emphasised the importance of trade frameworks such as the East African Community (EAC), Common Market for Eastern and Southern Africa, Tripartite Free Trade Area (TFTA) and African Continental Free Trade Area in expanding market access and strengthening resilience.

Kinyanjui added that Kenya is accelerating efforts to diversify export destinations, particularly in Asia, Europe and emerging markets in Latin America, while deepening intra-African trade to cushion the economy against global shocks.