Kenyan Sasini Tea targets China, India as Middle East crisis hits exports

Kenyan agricultural firm Sasini Tea is shifting focus to China and India for its avocado and macadamia exports, as its traditional markets in Europe and the United States face growing obstacles amid escalating tensions in the Middle East. 

The company said shipping produce through the Suez Canal and the Strait of Hormuz has become increasingly challenging due to security risks. Rerouting vessels around South Africa’s Cape of Good Hope adds travel time and doubles costs, making exports less competitive in established markets.

Thousands of ships stranded amid conflict

The move comes as roughly 3,000 ships and 20,000 seafarers are stranded in the region amid ongoing conflict involving the United States and Israel against Iran. The Strait of Hormuz, a key corridor leading into the Persian Gulf, is effectively closed because of the risk of attacks, according to the International Maritime Organization.

The closure follows a fatal incident Friday morning, when a tugboat assisting another vessel was struck, killing four crew members. The UN shipping agency condemned the attack and described the situation as “deteriorating,” urging ships to avoid the area. Meanwhile, the UN relief chief warned that disruptions could strain health systems and delay humanitarian supplies, hitting vulnerable populations hardest.

Kenya’s Sasini recovers from prior loss

Sasini Tea operates throughout Kenya, cultivating and processing tea, coffee, avocados, and macadamia nuts. The company also emphasizes value-added production for domestic and international markets. The Merali family, through Legend Investments Limited, Yana Towers Limited, and East Africa Batteries Limited, owns 65.46 percent of Sasini Tea Plc, representing a key part of the family’s diverse business portfolio.

For the fiscal year ending Sept. 30, 2025, Sasini Tea posted a profit of Ksh188 million ($1.46 million), recovering from a Ksh562.9 million ($4.4 million) loss in 2024. Revenue rose from Ksh6.84 billion ($53.1 million) to Ksh8.44 billion ($65.6 million), while gains from biological assets jumped to Ksh558.8 million ($4.3 million).

The company’s total assets edged up from Ksh25.2 billion ($195.8 million) to Ksh25.9 billion ($201.1 million). Shareholders’ equity and reserves followed a similar trend, rising to Ksh21.4 billion ($166.2 million) and Ksh20.6 billion ($160.1 million), respectively, reflecting a stable financial position despite global shipping disruptions.