EXPLAINER: How Kenya Loses Ksh300 Million Weekly From Middle East Conflict
Agriculture Cabinet Secretary Mutahi Kagwe has revealed that Kenya is losing Ksh300 million weekly due to the ongoing attacks in the Middle East.
In a press briefing on Thursday, March 12, Agriculture Cabinet Secretary Mutahi Kagwe said the conflict between the US and Israel with Iran has disrupted the flow of exports.
Affected products include meat products and tea to the Middle East, which is one of Kenya’s largest export markets for these products.
“There are some products that are already starting to be impacted, for example, we send to the Middle East, about Ksh 300 million worth of meat every week,” Kagwe has said.
“We have also been sending other food products to Iran, such as our distribution point for tea in Dubai, where we mix some of our tea, particularly for some of the Middle East Countries,” he added.
Kagwe has assured that the government has started the process of looking for other markets for the products in other countries, to ensure that the affected markets are replaced as soon as possible.
The CS also affirmed that the government has already formed a team to assess the situation and strategise how Kenya can cushion itself from severe economic impact, especially in the agriculture sector and exports.
“There are also other markets that have arisen as a result of the situation, and we believe that we will be able to cater to other markets and replace those ones that are currently in conflict,” Kagwe said.
The U.S. and Israel launched an attack on February 28, 2026, against strategic targets in Tehran, which prompted Iran to begin retaliatory attacks.
This has led to the closure of key trade routes and airspaces in the Middle East countries.
It is estimated that continued instability in Iran and the region at large could trigger prolonged supply disruptions, driving energy prices even higher and increasing costs for businesses and consumers worldwide.
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Reports earlier this week revealed that Global oil prices have jumped to over Ksh12,900 (past $100) per barrel following the conflict.
The drastic spike in oil prices has been attributed to the prolonged disruption of oil shipment through Iran’s Strait of Hormuz.
The Strait is a vital global energy route, with approximately 20 per cent of the world’s total oil consumption passing through it.
According to reports on Monday, March 9, Crude oil prices jumped by about 30 per cent, while Brent crude rose by roughly 26 per cent.
Other fuel products also saw significant increases, with heating oil climbing 22 per cent and gasoline prices rising by around 14 per cent.
EXPLAINER: How Kenya Loses Ksh300 Million Weekly From Middle East Conflict
