NAIROBI, April 21 (Xinhua) -- Kenya's annual exports worth 164.6 billion shillings (about 1.3 billion U.S. dollars) to the Middle East, one of its fastest-growing markets, are at risk due to escalating geopolitical tensions, a senior official warned Tuesday.
"These disruptions are particularly severe for high-value and time-sensitive exports, including horticulture, meat, dairy and specialty coffee," Cabinet Secretary for Trade, Investment and Industry Lee Kinyanjui said in a statement issued in Nairobi, the Kenyan capital.
Kinyanjui said that instability in the Middle East, a critical global transshipment hub, is creating a ripple effect, thus affecting Kenya's ability to reach major markets in Europe, Asia and North America, well beyond the Gulf region itself.
The official said the crisis has led to the suspension and restriction of key maritime and air cargo routes through the Red Sea and Gulf corridors.
According to Kinyanjui, the crisis has forced sea cargo onto longer routes, adding 10 to 20 days to transit times and driving up freight rates.
These logistical hurdles extend to air transport, where delays of up to 48 hours are compromising the quality of time-sensitive exports such as Kenyan flowers and vegetables, he said, with the floriculture sector suffering weekly losses of approximately 1.4 million dollars due to spoilage and transit delays.
Kinyanjui said tea exports, with the Middle East accounting for up to 35 percent of total volume, are facing significant price declines and heightened market access risks.
"Disruptions in labor markets and logistics are expected to reduce diaspora remittances, further exerting pressure on the country's foreign exchange position. Over 400,000 Kenyans work in the Gulf in sectors like hospitality, construction, and domestic services," he added.
