Kakuzi sets ambitious USD 776,699 investment plan for 2025

KENYA – Kakuzi PLC, a Kenya based agricultural company, has announced a substantial investment plan amounting to Sh100 million (USD 776,699.02) for 2025, aimed at diversifying its agricultural portfolio and enhancing sustainability.

This commitment comes as part of a broader strategy to expand the company’s operations and strengthen its position in both domestic and international markets.

Managing Director Chris Flowers shared insights into the company’s future during a recent farm tour in Murang’a County.

He highlighted the importance of integrating agricultural technology, water stewardship, and waste reduction into their practices. “Our focus is to ensure that we can measure and reduce carbon emissions while maintaining a sustainable approach to agriculture,” Flowers stated.

As part of its investment strategy, Kakuzi plans to introduce new commercial products, including blueberries and an expanded livestock range.

Flowers emphasized that market diversification is critical for the company, not only for export but also for tapping into the growing domestic and regional markets.

“By combining avocado, macadamia, and soon blueberries as our export crops, we aim to supply markets in Europe, China, India, the Middle East, America, Japan, and the UK, while also enhancing our domestic value addition,” he explained.

This strategy is designed to mitigate risks for shareholders and maximize returns, reflecting Kakuzi’s commitment to adapting to changing market conditions.

Flowers noted, “We believe that this approach will give us the greatest opportunities moving forward.”

In a landscape increasingly complicated by external factors, Kakuzi acknowledges the challenges posed by global logistics disruptions, particularly due to the ongoing impact of climate change and recent issues with shipping routes in the Red Sea.

“The complexity of doing business today is greater than it was during the Covid-19 pandemic. We are now facing new significant problems beyond our control,” Flowers said.

Board chairman Nicholas Ng’ang’a reiterated Kakuzi’s commitment to transparency and shareholder engagement. He announced that the company would continue to foster connections with shareholders through familiarization tours and ongoing discussions.

“Our shareholders are our primary stakeholders, and we’re proud they can visit us and see how their investments are being utilized,” Ng’ang’a noted.

Kakuzi’s recent financial performance supports its ambitious growth plans. The company reported a half-year pretax profit of Kshs 507 million (USD 3.93 million), largely driven by a resurgence in global demand for macadamia nuts and avocados.

Flowers attributed this success to the favorable international avocado market, where demand has significantly outstripped supply.

The firm’s avocado exports surged by 42%, generating Kshs 951 million (USD 7.37 million) in revenue, compared to Kshs 670 million (USD 5.19 million) during the same period last year.

Additionally, Kakuzi’s macadamia division, which had previously struggled, recorded a profit of Kshs 32 million (USD 247,895), bouncing back from a Kshs 329 million (USD 2.55 million) loss in the previous year.

Flowers remarked, “Global demand for macadamia nuts has returned to near pre-pandemic levels, positively impacting our earnings.” The company’s sustainable wood products division also reported a 54% increase in profits, reaching Kshs 71 million, reflecting the growing preference for sustainably sourced materials.

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.