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Tea industry hit as exports worth Ksh1.3 B stuck at port

Tea industry hit as exports worth Ksh1.3 B stuck at port
Containers at a port. Image is used for illustration. PHOTO/Pexels

Tea farmers are now bearing the brunt of diplomatic tension between Kenya and Sudan, currently staring at possible losses in billions. This comes as a result of halted exports to Sudan following a total ban of Kenyan goods into the war-torn country by their trade minister, following the decision by the Kenya Kwanza administration to host the Paramilitary Rapid Supported Forces (RSF) army and allies who have been fighting Sudan’s national government for close to three years now.  

By the close of last week, 82,800 bags of tea worth Sh1.3 billion were stuck at the Port of Mombasa while awaiting clearance to prSudanoceed to the Sudan market, indicating the impact of the ban that was fronted by the government’s “bold” decision.  

The country could even lose more as the impact on other products are yet to be shared by the relevant authorities and stakeholders. Early last month, the RSF army and its allies signed a charter that sought to form a separate government in Sudan in Nairobi and now Sudan’s national government sees it as an act of hostility.  

As a result, the country banned the import of Kenyan products in a bid to protect its sovereignty and national security, a big blow to Kenyan businesses and the economy at large.  

Sudan’s acting Minister for Trade Omar Ahmed Mohamed Ali stated that the decision to ban Kenyan imports was arrived at during a consultation with his country’s sovereign council.  

“Based on the recommendations from the sovereign committee tasked with addressing Kenya’s involvement with RSF and allies i hereby order suspension of all imports from Kenya through all ports, border crossing and airports effective immediately until further notice,” the minister said through a statement last week Tuesday.    Sudan is among the country’s top five destination markets for agricultural products and with the ban, the sector suffers a setback despite the current regime placing it at the center of attention in a bid to drive the economy.

Tea, coffee and tobacco are the key agricultural exports to the country then followed closely with soaps, electrical products and pharmaceuticals.

Tea buyers Association Chairman, Peter Kimanga, expressed concerns over the ban saying: “the ban of Kenyan tea imports to Sudan is major concern to traders and farmers and we are asking the government to intervene.”  However, Mutahi Kagwe, Agriculture Cabinet Secretary while acknowledging the matter during an engagement, said the country was working on addressing the issue.   

The impact of this abrupt ban is already being felt in Mombasa, where more than 207 forty-foot containers of tea bound for Sudan are now stranded at the port.

Export markets

With Sudan being one of Kenya’s top five tea export markets, industry leaders fear a ripple effect that could drive down auction prices and spell financial disaster for farmers and exporters.

Speaking in Mombasa on Friday, East African Tea Trade Association (EATTA) Managing Director George Omuga expressed deep concern over the fallout.

“Sudan purchases specific grades of tea that are already committed and cannot be diverted to other markets,” he explained.

“We have buyers with running contracts, and shipments have already been dispatched—some are at sea, some are at the Port of Sudan, and others remain in warehouses in Mombasa, packed and branded specifically for the Sudanese market. With this ban, all these teas are now in limbo.”

The financial strain, he warned, will be severe. Exporters will face crippling cash flow challenges, while Kenyan tea producers could lose one of their largest markets, worsening an already fragile situation at the Mombasa auction.

“This will significantly impact tea auction prices, directly affecting farmers’ earnings,” Omuga said. “The market glut we are already experiencing will only deepen.” EATTA is now urging the Kenyan government to intervene and negotiate a grace period of at least a month, allowing the clearance of already-dispatched shipments and warehouse stock.

“We appeal for urgent action to resolve this impasse and mitigate the heavy losses facing our industry,” Omuga pleaded.

The crisis stems from a political rift between Nairobi and Khartoum. Last month, the RSF and its allied political factions signed a charter in Kenya, signalling plans to form a parallel government in Sudan.

In retaliation, Sudan’s military rulers imposed the trade ban, asserting it was necessary to safeguard the country’s sovereignty and national security.

Beyond tea, Sudan also imports food products and pharmaceuticals from Kenya, raising concerns that the embargo could expand, further straining bilateral trade.

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