Tea, coffee exports take heavy hit as Sudan slams trade door

President William Ruto meets Rapid Support Forces leader Mohamed Hamdan Dagalo aka Hemedti in Nairobi. For over two years, the RSF led by US-sanctioned Mohamed Hamdan Dagalo aka Hemedti, has been at war with the Sudanese Armed Forces.
The ongoing dispute between Kenya and Sudan has taken a new turn after authorities in Khartoum announced an immediate ban on imports from Nairobi, citing Kenya's continued support for Rapid Support Forces (RSF) activities.
The drastic move, which comes weeks after members of the RSF signed a declaration in Nairobi aimed at the formation of a parallel government in Sudan is set to impact trade in a range of goods including tea, which is a key forex earner for Kenya.
In a statement on Thursday, Sudan issued by Sudan's Acting Minister of Trade and Supplies Omar Ahmed Mohamed Ali, he noted, "the import of all products from Kenya via all ports, crossings, airports, and entry points is suspended starting from this date until further notice."
This move is set to affect many businesses in Kenya who export to Sudan, risking job losses and missed trade opportunities.
According to statistics, Kenya exported goods worth about $48.15 million to Sudan in 2023, with key exports being coffee, tea, and spices ($29.71 million), tobacco and manufactured tobacco substitutes ($3.92 million), and animal and vegetable fats and oils ($2.41 million).
Data shows that Kenya also exported soaps and lubricants worth $1.67 million, and electrical equipment estimated at about $1.67 million during the year under focus.
However, Kenya's exports to Sudan have been on a downward trend, declining at an annualized rate of 7.07 percent over the past five years, from $69.5 million in 2018 to $48.2 million in 2023.
This decline reflects shifting trade dynamics and possible economic and political factors affecting bilateral trade. The recent import ban imposed by Sudan on Kenyan goods over alleged paramilitary links could further strain trade relations and impact businesses reliant on exports to the Sudanese market.
Kenya-Sudan trade war - the genesis
Authorities in Sudan are aggrieved following events of February 22nd when the RSF and its allied political and armed groups signed "a political charter" in Nairobi, announcing their plan to establish a "parallel government" in Sudan.
Soon after the Nairobi meeting, which has received condemnation from the African Union as well as from Qatar, and Saudi Arabia, Sudan called out Kenya and the administration of President William Ruto for backing the RSF.
For over two years, the RSF led by US-sanctioned Mohamed Hamdan Dagalo aka Hemedti, has been at war with the Sudanese Armed Forces.
Authorities in Sudan termed the events in Nairobi "a hostile act and blatant interference in Sudan's internal affairs" and a breach of international charters and agreements.
However, in a statement signed by Kenya's Foreign Affairs and International Trade Cabinet Secretary Musalia Mudavadi, Nairobi said the RSF event was "consistent with Kenya's role in peace negotiations, which requires it to provide non-partisan platforms for conflict parties to seek resolutions."