Listed agribusiness firm Kakuzi announced that it intends to introduce a fourth commercially produced crop, use agricultural technology (AgTech) solutions, and diversify its domestic and export markets in the next ten years to enhance shareholder returns.
Speaking at the firm’s 97th Annual General Meeting held earlier today, Kakuzi Managing Director Chris Flowers said the firm is exploring the addition of a fourth commercial crop alongside the current Macadamia, Avocado and Blueberry crops.
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 assured the 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.”
As part of its strategic plans to increase production over the next ten years, the firm disclosed plans to nearly double avocado production and exports from 3 million to 5 million four-kilo equivalent cartons. Kakuzi is also planning to increase its Macadamia production from 900 tons of kernel to 1,500 tons.
He noted that Kakuzi Blueberry crops has the potential to generate large revenue streams while allowing the firm to diversify its footprint into significantly different geographical markets.
“We have appraised the business model for Blueberries, and its performance in 2024 gives us confidence that a commercial scale is viable. We shall be able to confirm our position as we move through 2025 as production is set to double,” he said.
Kakuzi Chairman Nicholas Ng’ang’a said the firm’s commitment to responsible business practices and environmental stewardship remains unwavering, for continued growth and resilience.
He stressed the need for a national economic diplomacy effort to secure avocado access in the United States market and tariff-free access in the China and India markets. Both China and India currently impose a 30 percent tariff on Kenyan avocados.
“Kakuzi’s products have a strong presence in global markets, including the USA, Japan, and Europe. Our strategic growth plan aims to enhance our exports and regional sales by diversifying products and markets. We are committed to maintaining the highest standards for market access, ensuring that our products meet global standards for quality, traceability, and sustainability,” Mr. Ng’ang’a said.
“Kakuzi is actively developing new markets to reduce risks and create greater competition. Whilst we sell our macadamia nuts to the USA, Kenya doesn’t have market access for its avocados, which we as a Country must work on.”
Last year, Kakuzi posted a pre-tax loss of Sh167 million, which was attributed to adverse weather conditions due to excessive rainfall, currency fluctuations, and geopolitical tensions, including conflicts in the Middle East.
These tensions have disrupted traditional export routes, extended transit times, and impacted quality.
“Before the Houthi rebels started attacking merchant ships in the Red Sea strait, merchant vessels carrying our avocados were able to reach Europe in 35 days, from Mombasa, through the Suez Canal and through to Europe via the Mediterranean Sea.”
“Because of these attacks, in 2024 the ships would not travel through the Red Sea and instead would be rerouted through two more ports where our cargo is removed from one vessel and placed on another,” Flowers explained.
“With the new shipping routes, our produce transit time has increased to around 50 days, seriously damaging the fruit quality. Thankfully, the shipping lines now use one transhipment port, with the journey time reducing to 43 days.”
In 2024, Kakuzi delivered a strong operational performance despite global market challenges. The Company maintained its focus on sustainable agricultural practices, community engagement, and long-term value creation.
During the AGM, Kakuzi Shareholders approved the payment of a first and final dividend of Sh8.00 per ordinary share for the Financial Year ended 31 December 2024, to the shareholders on the members’ register at the close of business on Friday, May 30 2025.
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