Kenya Moves to Leverage Transshipment Opportunities Amid Gulf Crisis

NAIROBI, Kenya, Mar 30 — President William Ruto said Kenya will engage international logistics companies to capitalize on emerging transshipment opportunities as conflict in the Gulf disrupts global supply chains and reshapes trade patterns.

In a statement on Monday, Ruto said the government was moving to mitigate the economic impact of the Middle East crisis, which has driven up oil prices and strained supply chains worldwide, with ripple effects already being felt across Africa.

The president said he had received a comprehensive briefing from key ministries, including energy, agriculture, trade, and the National Treasury, alongside the Central Bank and private sector players, on the evolving situation and proposed interventions.

Kenya has so far cushioned consumers from sharp fuel price increases through its government-to-government petroleum procurement arrangement, which Ruto described as a “prudent and forward-looking” measure that has ensured security of supply.

“While the impact on pricing is still being assessed, measures are being put in place to moderate any adverse effects and ensure that Kenya maintains adequate supplies,” he said, adding that the Ministry of Energy is working with the Treasury to implement further interventions.

On agriculture, Ruto said fertiliser supplies remain stable, with sufficient stocks to support the current rainy season through September, easing concerns of potential disruptions to food production.

Trade performance has remained resilient despite fears of market disruptions, particularly for tea exports.

Government data showed that 81 per cent of tea offered at auction this month was sold, up from 75 per cent in March last year, supported by diversification into new markets.

Kenya is also seeing increased activity at its key maritime hubs, including the Port of Mombasa and Port of Lamu.

 The Lamu port has recorded a surge in throughput, including more than 4,000 high-value motor vehicles bound for Gulf markets for onward transshipment.

Ruto said the government would leverage this momentum by partnering with global logistics firms to strengthen Kenya’s position as a regional trade and transshipment hub.

However, some sectors have faced challenges. Meat exports have been disrupted due to freight and logistical constraints, prompting the ministries of trade and agriculture to explore alternative solutions to support exporters.

“The government remains committed to closely monitoring developments and taking decisive action to safeguard the economic well-being of all Kenyans,” Ruto said.

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