Kakuzi Plc has unveiled a ten-year plan to introduce a fourth commercial crop and expand its export capacity, aiming to strengthen returns and diversify markets.
The strategy was shared during the company’s 97th Annual General Meeting on Tuesday, where Managing Director Chris Flowers explained that diversification remains a priority alongside the current production of macadamia, avocado, and blueberry.
He noted the blueberry segment shows promise.
“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 plans to increase avocado exports from 3 million to 5 million cartons and raise macadamia production from 900 to 1,500 tonnes.
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“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 said.
“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.”
Chairman Nicholas Ng’ang’a called for improved access to international markets and urged government intervention.
"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," Ng'ang'a
"We are committed to maintaining the highest standards for market access, ensuring that our products meet global standards for quality, traceability, and sustainability,” he 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.”
The company also cited export delays due to Red Sea attacks.
“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,” said Flowers.
“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."
"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,” he added.
Kakuzi posted a pre-tax loss of Sh167 million in 2024, citing excessive rainfall, currency fluctuations, and regional conflicts.
Nonetheless, shareholders approved a final dividend of Sh8.00 per share, payable on May 30, 2025.
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