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Mainstream FT Global Economy 4 hours ago

Iran war withers Kenya’s roses and strands its tea

Kenya’s agricultural sector is facing significant challenges as the ongoing conflict in Iran disrupts key export markets, particularly affecting the country’s rose and tea industries. The war has led to logistical bottlenecks and increased costs, straining Kenya’s ability to supply these high-demand products to international buyers. This disruption threatens the livelihoods of thousands of farmers and workers dependent on these exports. The rose industry, a major contributor to Kenya’s economy and a leading supplier to European markets, has been hit hard by delays and heightened transportation costs caused by the conflict. Similarly, Kenya’s tea sector, which relies heavily on exports to Middle Eastern countries including Iran, is experiencing reduced demand and payment complications. These challenges come at a time when global supply chains are already fragile, exacerbating the economic impact on farmers and exporters. Kenya’s reliance on agricultural exports for foreign exchange earnings makes these disruptions particularly concerning. The war in Iran has not only affected direct trade routes but also increased insurance premiums and freight charges, further squeezing profit margins. Policymakers and industry leaders are now seeking alternative markets and logistical solutions to mitigate the fallout and sustain the sector’s growth. The situation underscores the vulnerability of global agricultural supply chains to geopolitical conflicts and highlights the need for diversification in export destinations. For Kenya, maintaining the stability of its flower and tea industries is crucial for economic resilience and rural employment, making the resolution of these trade disruptions a priority for both government and private stakeholders.

Original story by FT Global Economy View original source

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