US-Israel war on Iran triggers shutdown of trade in Garissa

News · Yunis Dekow · March 20, 2026
US-Israel war on Iran triggers shutdown of trade in Garissa
Suuq Mugdi in Garissa County. PHOTO/Handout
In Summary

The traders said uncertainty in export markets, particularly across the Gulf, has forced them to halt buying to avoid accumulating unsold stock.

Businesses dealing in recycled plastic materials in Garissa County have suspended operations, cutting off purchases from local collectors and small-scale suppliers amid disruptions linked to the escalating Middle East conflict.

The traders said uncertainty in export markets, particularly across the Gulf, has forced them to halt buying to avoid accumulating unsold stock.

Abdi Hassan, a businessman operating a large plastic aggregation yard along Kismayo Road, said the situation had deteriorated rapidly.

“We used to clear 15 to 20 tonnes every week,” he said. “Now we have told all our suppliers we are not buying anything until the situation stabilises. Our main buyers in the Gulf and Europe have either closed their doors or cannot take delivery. We cannot risk buying stock that will sit here and rot.”

Garissa’s recycling sector largely depends on exporting processed plastic flakes and pellets to markets in the Middle East, where they are used in manufacturing packaging, construction materials and consumer goods.

However, industry players say the conflict has triggered widespread logistical disruptions.

Siyad Jimale, Executive Director of Horizon Analyst and Researchers Network (HARN), said key export destinations were either directly affected and experiencing severe supply chain interruptions.

The crisis has been compounded by restrictions on commercial shipping through the Strait of Hormuz, reportedly imposed by Iran, creating a bottleneck for cargo movement.

Shipping sources indicate that several vessels carrying goods linked to Kenyan exports remain stranded or diverted, awaiting safe passage.

Insurance premiums for shipments through the region have also surged, while some shipping lines have suspended services entirely.

A Mombasa-based freight forwarder handling Garissa consignments said delays had already begun to pile up.

“We have two containers of recycled HDPE that have been sitting at the port for nine days with no sailing date in sight. Even if buyers were ready, the ships are not moving. This is now a global supply chain problem,” the source said.

The shutdown is rippling through the local economy.

Community development expert Sheikh Ahmed estimates that Garissa’s informal plastic collection sector supports between 2,000 and 3,000 households, including refugees and host community members.

Many of these households rely on daily income from collecting and selling plastic waste.

Collectors such as Bahati Sana say the market has effectively collapsed, leaving them without buyers. Some have resorted to dumping or burning plastic waste, raising environmental and public health concerns.

“This sector was one of the few bright spots for youth employment in the region,” said Jimale. “If the Hormuz situation drags on, we could see a serious knock-on effect on local incomes and increased pressure on county waste management systems.”

He called for urgent diversification of export markets to East Asia and Europe, alongside diplomatic efforts to ensure continued access to critical global shipping routes.

The disruption is not limited to the recycling industry.

Kenya’s broader export sector is also facing mounting losses. Tea exports—about 65 percent of which go to Gulf countries, Pakistan and Iran—are under strain, with shipments delayed at the Port of Mombasa. Exports to Iran alone are valued at approximately $32.8 million annually.

The horticulture sector is similarly affected, with exports of flowers, avocados, fruits and vegetables disrupted by rerouted flights and rising freight costs. Industry estimates indicate weekly losses exceeding $2.32 million.

Meat exports to Gulf markets have dropped to below five percent of normal volumes, missing the high-demand Ramadan season.

At the same time, rising global oil prices are increasing the cost of fuel and fertiliser, adding further pressure on producers and households.

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