Tea Exporters Urged to Tap African Markets via AfCFTA Amid Middle East Disruptions

Kenya’s tea exporters face mounting pressure to diversify their markets following a sharp drop in shipments to the Middle East. The ongoing conflict involving Iran has disrupted shipping routes, causing losses estimated at USD 24 million (Sh 3.1 billion) in the last three weeks alone.

Officials now point to the African Continental Free Trade Area (AfCFTA) as a viable alternative to cushion the sector from external shocks.

The call came during an Exporters Roundtable held in Mombasa. Kenya Export Promotion and Branding Agency (KEPROBA) CEO Ms. Floice Mukabana addressed participants and framed the crisis as a chance to strengthen intra-African trade.

Heavy Losses from Disrupted Routes

The conflict has affected key logistics through the Strait of Hormuz and surrounding airspace. Many Kenyan tea consignments destined for Iran and other Gulf markets remain stalled. Higher insurance costs and delayed vessels have added to the burden.

Iran ranked among Kenya’s top ten tea importers. In 2024, the country bought approximately 13 million kilograms valued at USD 32.8 million (Sh 4.26 billion). A proposed USD 40 million supply deal now hangs in the balance.

Tea remains Kenya’s leading agricultural export. Any prolonged disruption risks factory closures, reduced farmer payments, and job losses in the sector that supports hundreds of thousands of smallholders.

AfCFTA as Strategic Opportunity

Mukabana urged exporters to accelerate exploration of African markets. The AfCFTA creates a single market of over 1.3 billion people with reduced tariffs and fewer trade barriers.

“Africa offers huge untapped potential,” she noted. Countries in the East African Community, COMESA, and beyond present ready demand for Kenyan tea, especially value-added and packaged products.

Exporters can leverage preferential trading rules under AfCFTA to access markets in West Africa, Southern Africa, and North Africa. This diversification reduces over-reliance on traditional destinations in Europe, Asia, and the Middle East.

KEPROBA continues to support businesses through market intelligence, branding assistance, and facilitation of trade missions.

Growing Demand Across the Continent

Intra-African tea trade has room to expand. Many African countries import significant volumes of tea while local consumption rises with urbanisation and changing lifestyles.

Kenyan tea enjoys a strong reputation for quality and flavour. With proper packaging and certification, it can compete effectively in supermarkets, hotels, and ready-to-drink segments across the continent.

The roundtable also discussed practical steps. These include obtaining AfCFTA certificates of origin, improving logistics within Africa, and meeting sanitary and phytosanitary standards required by importing countries.

Sector Resilience in Focus

The Tea Board of Kenya and other stakeholders continue monitoring the situation. Short-term measures aim to reroute consignments where possible while long-term strategies focus on market expansion.

Farmers in Kericho, Nandi, Nyeri, and other tea-growing counties await improved fortunes. Stable export earnings directly affect their monthly payments and livelihoods.

As global uncertainties persist, Kenya’s tea industry looks inward to Africa for stability and growth. Leveraging AfCFTA could transform a current challenge into a foundation for more resilient and inclusive export performance.