Closure of Iranian Port of Salalah threatens Kenya’s tea export 

The sudden closure of the Port of Salalah, a major shipping route has shaken the Kenya’s tea export forcing leaders in the tea sector to convene crisis meetings to deliberate on the possibility of turning to the existing longer routes to reach key export markets.

Kenya Tea Development Agency (KTDA) Chairman Enos Njeru said the situation has become extremely serious for stakeholders in the agricultural sector, after the closure of the Port of Salalah in Iran thus the need for alternative routes and markets.

The meetings by the leaders in the sector were prompted by fears that transporting the commodity to international markets would become more expensive if the crisis persisted, potentially disrupting the cash flow of tea factories.

A major concern in the sector is that factories may be unable to pay the expected mini bonus to farmers next month, which might cause uproar in the tea-growing belts.

Njeru noted that the Iranian Port of Salalah serves as a key sea transport hub that connects many of the tea destinations, including Pakistan, the United Kingdom, and several countries across Europe.

“Its closure is likely to have significant consequences, not only for the tea business but also for the broader global economy,” said Njeru.

He urged factory directors to start sensitising farmers on the potential impacts of the Middle East crisis on the final bonus.

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“Since the Port of Salalah has been closed indefinitely, exports to Pakistan and other Middle Eastern countries through this route may be disrupted,” he said.

Njeru further called on factory boards to convene urgent meetings to deliberate on cost-cutting strategies and develop plans to sustain operations.

“In particular, we must consider how we will continue paying our farmers if sales are disrupted for a period during the conflict,” he added.

There are also concerns that factory cash flows may be severely affected, potentially interfering with the first payment to farmers.

“We appeal to factory boards to tighten their belts and implement strict cost-control measures to ensure they meet their monthly obligations,” said the chairman.

Tea value chain expert Peter Kamore asked the factory directors to encourage farmers to boost local consumption by purchasing at least one packet of tea leaves per month through the check-off system.

“If embraced, the system would help increase local consumption and reduce the volume of tea held in warehouses,” said Kamore.

He added that a structured approach will be developed to ensure the initiative is implemented smoothly across the sector.

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Kenneth Muriithi and Francis Kiptanui said the closure of a major port might take longer than expected, requiring factory leadership to engage with farmers as a precaution.

“It is an opportune time for the farmers to be involved in the decision-making to ensure information pertaining to the transportation of the tea is known by all,” said Muriithi.

The strategic meeting was attended by the officials from the Tea Board of Kenya, East African Tea Association, Kenya Tea Growers Association, Independent Tea Producers Association of Kenya), Kipchimchim Group.

By Morris Githenya

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