Kenyan meat exporters count KSh1bn losses as Iran-Israel war disrupts Middle East trade

Kenyan meat exporters are counting heavy financial losses following disruptions in trade routes to the Middle East caused by the ongoing conflict involving Iran and Israel.

Industry players estimate that exporters have lost about KSh1 billion within five days after flights carrying meat products to the Gulf region were grounded due to the escalating conflict. The disruptions have affected the shipment of perishable goods, leaving exporters with large quantities of unsold stock.

The Middle East is a key market for Kenyan livestock products, especially beef and goat meat destined for countries such as the United Arab Emirates, Saudi Arabia, Oman and Kuwait. However, closure of airspace and heightened security concerns in the region have forced airlines to suspend cargo flights, disrupting the supply chain.

As a result, hundreds of tonnes of meat that had already been processed for export remain in cold storage facilities across the country. Exporters say the delays threaten the quality and value of the products, which rely on quick transportation to overseas markets.

According to industry estimates, more than 200 tonnes of chilled and frozen meat intended for Middle Eastern markets is currently stuck in storage facilities after shipments were halted.

The situation has particularly affected exporters who had anticipated increased demand during the Ramadan season, when consumption of meat products in Gulf countries typically rises. Instead of benefiting from the seasonal demand, many exporters have been forced to absorb heavy financial losses due to the sudden suspension of transport.

Nicholus Ngahu, Chief Executive Officer of the Kenya Meat Livestock Exporters Industry Council (KEMLEIC), said the industry has been unable to continue slaughter operations because shipments have stalled.

“Any meat that we slaughtered on Friday and Saturday has not left the country and we have not been able to slaughter meat from Monday to date. We are looking at a loss of about KSh1 billion for the five days that we have not been able to slaughter,” he said.

Export logistics have also been complicated by flight cancellations and diversions. In some cases, aircraft carrying meat consignments have had to return to Kenya, forcing exporters to move the products back to slaughterhouses for storage.

Dennis Muraya, Director at Konza Clearing Agency, noted that the disruptions have also driven up transport costs as exporters struggle to secure limited cargo space.

“The aircraft that has just left a few minutes ago has carried 60 tonnes of meat, and it is the only one we have had since Saturday,” he said, adding that freight costs have doubled or even tripled because of the crisis.

At the processing level, slaughterhouses have also been forced to slow down or temporarily halt operations due to the backlog.

Waweru Kamau, Production Manager at Juja International Abattoirs, said the disruptions have left large volumes of meat lying in storage facilities awaiting transportation.

“For all the facilities, we export up to between 125 and 130 tonnes every day, and all that goes to the Middle East. As we speak now, all the meat that was sorted on Friday is still lying in the chillers of our facilities,” he said during an interview with local media.

Kamau added that slaughterhouses had in some cases asked staff to stay at home as exporters wait for the situation in the Middle East to stabilise and cargo flights to resume.

The ongoing conflict is also raising concerns about wider economic implications for Kenya, as the Middle East remains a major destination for several agricultural exports including tea, flowers and meat. If the instability continues, exporters fear further disruptions to trade and rising logistical costs.