Kakuzi outlines growth plans to boost earnings

Kakuzi Plc Packhouse Manager Ms Monica Nyambura (left) explains the quality features of an export-grade avocado fruit to Kenya Defense Forces (KDF) Joint Command and Staff College (JCSC) Commandant Major General Eric Kinuthia (right) at the Kakuzi Packhouse. (Boniface Gikandi, Standard)

Listed agribusiness firm Kakuzi has announced its intention to introduce a fourth commercially produced crop, use agricultural technology (AgTech) solutions, and diversify its domestic and export markets in the next 10 years to enhance shareholder returns.

Speaking at the company's 97th Annual General Meeting (AGM) on Wednesday, Managing Director Chris Flowers said the firm is exploring a fourth commercial crop alongside macadamia, avocado and blueberries.

He said the need for a fourth commercial, large-scale crop for Kakuzi remains a key priority as the firm continues to evaluate the business case for blueberries, which are showing promising potential.

"The Kakuzi board has outlined a medium to long-term strategic growth plan to enhance our returns on investment and sustain our positioning as an integrated international agri-business firm," he told shareholders.

"The key components of our future expansion plans include investment in agricultural technology solutions, strategic crop diversification, increased production, sustainable agricultural practices and evaluation of non-agricultural revenue streams."

The firm also plans to nearly double avocado production and exports from three million to five million four-kilo equivalent cartons.

Kakuzi is also planning to increase its macadamia production from 900 tonnes of kernel to 1,500 tonnes. Mr Flowers said blueberry crops have the potential to generate huge revenue streams while allowing the firm to diversify its footprint into different geographical markets.

Kakuzi Chairman Nicholas Ng'ang'a said the firm's commitment to responsible business practices and environmental stewardship remains key to continued growth and resilience.

He stressed the need for a national economic diplomacy effort to secure avocado access in the US market and tariff-free access in the China and India markets.

Both China and India currently impose a 30 per cent tariff on Kenyan avocados. "Kakuzi is actively developing new markets to reduce risks and create greater competition. Whilst we sell our macadamia nuts to the US, Kenya doesn't have market access for its avocados, which we as a Country must work on," he said.

Last year, Kakuzi posted a pre-tax loss of Sh167 million attributed to adverse weather conditions, currency fluctuations, and geopolitical tensions, including conflicts in the Middle East.

During the AGM, shareholders approved the payment of a first and final dividend of Sh8 per ordinary share for the financial year ended December 31, 2024, to the shareholders on the members' register at the close of business on Friday, May 30, 2025.