Fruit exporter Kakuzi Plc has reported a Kes 387.5 million net profit for the trading year ended December 2025, marking a huge turnaround from the Kes131.6 million loss suffered a year earlier.

Buoyed by the strong performance, the Board has also recommended a first and final dividend of Kes 16 per share, effectively doubling the shareholder payout made in 2024.

From total revenues of Kes5.4 billion, Kakuzi which also grows and exports avocadoes, macadamia numts and Blueberries, posted a Kes 568 million pre-tax profit, up from the Kes 167 million pre-tax loss in 2024.

According to Kakuzi Plc Chairman Nicholas Ng’ang’a, while certain circumstances that led to the loss in 2024 have been mitigated, geopolitical tensions continue to negatively impact the firm’s flagship avocado operations.

Market diversification

To mitigate losses, Kakuzi Managing Director Chris Flowers said the firm is rolling out a products-and-market diversification strategy, among other efforts to accelerate growth.

“We have expanded our irrigation water conservation capacity by adding one million cubic meters of rainwater storage, bringing our total to 13 million cubic meters. This key development further enhances our self-sufficiency in water tapped from water catchment areas in our farm,” Mr Flowers said.

He added, “These sustainability and business development initiatives demonstrate our commitment to integrating sustainable agricultural practices into our operations, which we believe will be fundamental to our future success.”

While describing the company’s performance as commendable on the back of tighter governance and sustainable business operations, Mr Flowers singled out the firm’s blueberry operations, which continue to indicate that, despite high establishment costs, the crop could significantly contribute to Kakuzi’s diversification strategy.

“As a part of our corporate strategy of product diversification, we continue to focus on value addition wherever it makes commercial sense. The strategy is paying off, and while Kakuzi was export-oriented in the past, we can now confirm that we have a growing domestic market contribution to the bottom line, with sales exceeding Ksh 50 million,” he said.

Value-add products

Kakuzi’s domestic market revenue stream is enjoying steady growth from the sale of value-added products at the Kakuzi Farm Market, including ready-to-eat macadamia nuts, cold-pressed macadamia oil, avocados, and blueberries. This year, the firm has also recently added loose-leaf tea products.

During the period under focus, Kakuzi's avocado net earnings grew by 96 percent to Kes709 million, up from Kes361 million in 2024.

However, avocado shipments continue to be impacted by complex shipping logistics experienced last year, the firm said. 

Whereas the Red Sea route to European markets reopened in the year, Kakuzi said it is experiencing logistical instability, negatively impacting the quality and therefore prices of the fruits.

In 2025, the production of avocadoes went up by 23 percent, but the volumes that landed in export markets were affected due to persistent pest and diseases. 

“Pest pressure continues to intensify nationally as the area under avocado orchards increases. We, however, continue to work with the relevant partners to develop new techniques to proactively manage these emerging issues,” Mr Flowers said.

Avocado export market competition

Kakuzi said avocado prices in European market prices were lower especially for the firm's Hass variety due to huge volumes from competitors Peru, South Africa and Colombia. 

Last year, Kakuzi exported 525 containers, up from 446 containers the previous year, achieving an average price of Euro 7.13 per carton of avocado fruit.

The company continues to develop mitigation measures, including leveraging market access to both China and India. “While these markets offer easier logistics, the current market size does not offer an immediate substitute for Europe,” Mr Flowers explained.

The firm’s macadamia business posted better profits, closing at Kes365 million, up from Kes 69 million the previous year. Demand for macadamia, Mr Flowers said, continues to recover, with increased sales volumes and improved prices. 

“However, to maintain sustainable demand, the product needs to expand the opportunities for how consumers can experience quality macadamia kernels,” he said.

The Kakuzi Blueberry operation recovered to a Kes 5 million profit, up from a Kes 19 million loss the previous year even as production volumes hit 90 tonnes, up from 53 tonnes in 2024.

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