Kakuzi posts solid half-year results with US$2.3M profit

KENYA – Kakuzi Plc has posted a net profit of KES295.5 million (US$2.28 million) in its half-year 2025 results, supported by growth in revenues and improved performance across its crop portfolio.

The company’s total revenue rose to KES1.51 billion (US$11.59 million), up from KES1.17 billion (US$9.04 million) during the same period last year.

Speaking while confirming the results, Kakuzi Managing Director Chris Flowers said the business continues to grow despite ongoing market pressures.

“The year-to-date trading in our two core crops is in line with expectations. The international avocado market has been well supplied, with price levels reflecting this situation,” he explained.

Flowers noted that earlier shipping disruptions have eased. “The earlier experienced shipping route challenges are also beginning to stabilise with an increasing number of voyages returning to the Red Sea routing,” he said.

The avocado division reported a half-year profit of KES 395 million (US$3.05 million) compared to KES 951 million (US$7.35 million) in 2024. The decline reflects a lower crop valuation this year as European markets also receive fruit from Peru, South Africa and Colombia.

At the close of the reporting period, Kakuzi had exported 165 containers of avocados, equivalent to 801,840 cartons.

The company’s macadamia division delivered strong results, with profits jumping to KES 319 million (US$2.47 million) from KES 32 million (US$0.25 million) in the same period last year. Flowers also confirmed that blueberry production has begun to contribute positively.

“This (blueberry) business venture is now profitable, recording a half-year profit of KES 13 million (US$0.10 million) compared to a KES 17 million (US$0.13 million) loss for the same period last year,” he said.

He added that the Board remains committed to expanding operations responsibly. “Our operating mandate is firmly rooted in our purpose of ‘Growing Together’, lifting others as we grow through a process of meaningful stakeholder engagement,” Flowers said.

Land concerns and market diversification

Despite the growth, Kakuzi has faced recent land invasion incidents. Flowers expressed concern over the impact.

“The actions have occasioned massive environmental damage and raised security tensions among the local community. We are, however, pursuing legal remedies and redress available to us, to secure shareholder rights and avoid attempts to expropriate or erode the value of our shareholder assets,” he assured shareholders.

The company’s strategy remains anchored in contributing to Murang’a County and Kenya’s wider economy through job creation and foreign exchange earnings.

Earlier this year, Kakuzi reported that geopolitical tensions, weather changes and currency fluctuations weighed heavily on 2024 performance, leading to a pre-tax loss of KES 167 million (US$1.29 million).

That period also saw avocado yields fall due to excessive rainfall and shipping detours around the Cape of Good Hope. However, macadamia, forestry and livestock divisions posted stronger results, reflecting the importance of diversification.

Looking ahead, Flowers said the company will continue adjusting its logistics to match longer delivery times. Kakuzi Chairman Nicholas Ng’ang’a added that exploring new export destinations remains vital.

“To reduce our dependency on European markets, it is essential for both public and private stakeholders in Kenya’s avocado sector to explore high-value new markets,” he said, pointing to North America as a major opportunity.

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