98th Annual General Meeting
Financial Performance
A pre-tax profit of Ksh 568 million was recorded for the year (2024: pre-tax loss of Ksh 167 million). Whilst certain circumstances leading to the loss in 2024 have been mitigated, geopolitical tensions remain and continue to impact our avocado operations negatively. Further efforts to mitigate losses are continuing in earnest.
Avocado Profits: An improved but challenging year
Profit improvement: In 2025, avocado profits reached Ksh 709 million (2024: Ksh 361 million). Whilst this represents a 96% increase, the results are still being negatively impacted by instability in our shipping logistics.
Production: Whilst production improved by 23%, the export volume was negatively impacted by pest and disease pressure. Pest pressure continues to intensify nationally as the area under avocado orchards increases. We continue to work with the relevant partners to develop new techniques to manage these emerging issues.
Currency: The average Shilling to Euro exchange rate remained fairly stable for the year at Kshs 146.03 compared to that of 2024 (Average Kshs 145.82). Avocado sales in Europe are transacted in Euros and thus no material exchange losses incurred.
Market Conditions: The European market prices were lower for our main Hass crop, due to substantial volumes from traditional suppliers Peru, South Africa, and, to some extent, Colombia. The Red Sea route reopened in the year; however, logistical instability on this route continues to cause fruit quality problems and lower prices. In 2025, we exported 525 containers (2024: 446 containers), achieving an average price of Euro 7.13 per carton (2024: Euro 7.64 per carton).
The Company continues to develop mitigation measures, including leveraging market access to both China and India. Whilst these markets offer easier logistics, the current market size does not offer an immediate substitute for Europe.
Macadamia Profits: Continued recovery
Profit Improvement: In 2025, the macadamia operations recorded a much-improved profit of KSh 365 million (2024: KSh 69 million).
Demand for macadamia kernel continues to recover with increased volumes of sales and improved prices. However, in order to maintain sustainable demand, the product needs to expand the opportunities for how consumers can experience quality macadamia kernel.
The average price achieved in 2025 for all kernel was US$ 11.70 per kilo (2024: US$ 9.00 per kilo). Whilst this 30% price increase is welcome, it remains lower than pre-COVID levels of circa US$ 15.00 per kilo.
As our orchards mature, we continue to witness increasing volumes. In 2025, a total of 7.8 million kilos of nuts in husk were produced from our 1,410 hectares (2024: 6.9 million kilos), representing an annual growth of 13%.
We remain confident that market demand for good-quality, premium size kernels will continue to improve; however, for smaller kernel, we anticipate a less balanced market, leading to some price volatility.
Forestry & Livestock: Another good year of profitability
Stable profits: Forestry profits (prior to biological asset valuation) recorded similar performance to last year at Ksh 122 million (2024: Ksh 128 million).
Demand for poles and timber remains firm, and we continue to grow our customer base for our range of sustainably grown timber.
Livestock operations again broke even, in line with last year’s performance. Livestock sales continue to be through the Company’s butchery and Boran Barn restaurant.
Tea: Production was down and the operation loss making.
Profit reduction: The international price for Kenya tea continued to suffer on the back of high global inventories of the product. Consequently, the price paid for our leaf reduced 11% to Ksh 166 per kilo of made tea (2024: Ksh 186 per kilo of made tea)
Profits were negatively impacted with the production unit recording a loss of Ksh 53 million (2024: Profit of Ksh 15 million).
Blueberry: Increased production and profits
The operation made a profit of Ksh 5 million (2024: a loss of Ksh 19 million). Production volumes increased to 90 tons (2024: 53 tons). The new varieties continue to perform according to expectation for both yield and fruit quality. In 2025, the average price was US$ 12.40 per kilo (2024: US$ 11.54 per kilo)
Key Achievements
I am pleased to report that the Company’s investment in its multiple crops continues to demonstrate reasonable returns. The increase in macadamia volumes and the return to acceptable levels of profitability is commendable.
The results for our blueberry operations are encouraging and continue to indicate that, despite a high establishment cost, this crop has the potential to significantly contribute to our 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 over Ksh 50 million of sales recorded.
This significant sum was generated from the sale of our value-added products through our Kakuzi Farm Market, including ready to-eat macadamia, cold-pressed macadamia oil, avocado fruits and blueberry packs. In addition, we have recently introduced a loose-leaf tea product available in 250g and 500g packs.
Corporate Governance
Shareholders would have read the recommendations from National Lands Commission’s deliberations during the third quarter of 2025. After obtaining legal advice, we have moved to Court challenging the constitutional legitimacy these recommendations. The legal process is ongoing, and we will keep shareholders informed as material developments occur.
The Company has also filed a lawsuit in the Supreme Court to defend its ownership of the 70-acre golf course. The Supreme Court has already heard this matter and we await their judgement.
Regarding the issues raised by the CMA in 2020, the matter is now before both the Court of Appeal and CMA Tribunal.
Sustainability Initiatives
Sustainability remains central to our operations, underpinning our commitment to responsible business practices in line with societal aspects, what is good for the environment, planet and business outcomes. Company Community Partnerships continued to evolve through continuous needs assessments and structured engagement with local communities, administration, and partner institutions. These engagements provide insights that shape our actions in line with the UN Guiding Principles on Business and Human Rights. We published our Sixth ESG report in the year.
We continued strengthening our approach to responsible resource management, building on longstanding investments in water security and technology based, climate conscious agricultural practices. These efforts supported operational resilience throughout the year.
The impact of climate change on our operations cannot be ignored. In 2024, we experienced a significant reduction in avocado production due to the excess rainfall experienced in the early part of the year. Some orchards were simply inundated by of the heavy rain, with approximately 30 hectares lost to flooding.
Climate change remains a defining factor for our operating environment. In 2025, we continued our work on climate change mitigation and landscape restoration through structured tree-planting initiatives, riparian rehabilitation along the Thika River, and conservation partnerships. These activities are geared towards supporting ecosystem recovery and the health of our agricultural operations.
I am pleased to inform our stakeholders that we expanded our irrigation water conservation by adding an additional one million cubic meters of storage capacity, bringing our total to 13 million cubic meters. This key development further enhances our self-sufficiency in water through our use of water catchments.
Our efforts to transform waste agricultural products into valuable resources continue. The production of biochar from macadamia shells provides a sustainable solution to waste management and also supports our commitment to environmental sustainability and agricultural innovation. If our trials prove successful, the biochar produced will be combined with our other organic compost to improve soil health, sequester carbon, and enhance the soil’s water and nutrient-holding capacity.
These initiatives demonstrate our commitment to integrating sustainable agricultural practices into our operations, which we believe will be fundamental to our future success.
Our focus on sustainable agricultural innovation continued, with increased emphasis on regenerative land management and expanded collaborations in environmental conservation. These efforts continue to contribute to healthier soils, improved carbon retention, and long-term agricultural sustainability.
In 2025 in line with our broader sustainability agenda, Kakuzi continued its Corporate Social Investment and sustainability initiatives in alignment with the United Nations Sustainable Development Goals (SDGs), with a focus on Good Health and Well-being (SDG 3), Quality Education (SDG 4), Gender Equality (SDG 5), Clean Water and Sanitation (SDG 6), Decent Work and Economic Growth (SDG 8), and Climate Action (SDG 13).
Kakuzi advanced its Decent Work and Economic Growth priorities by contributing to local economic activities and livelihood development. During the year, the Company directed over Ksh 74 million in procurement spend to local suppliers and expanded skills-building efforts through community beekeeping initiatives, supporting greater economic participation and resilience.
These initiatives demonstrate Kakuzi’s continued commitment to integrating sustainability into its operations and fostering resilient, empowered communities for long-term shared value.
Collaborative conversations and open communication channels with diverse stakeholders continue to foster sustainable relationships. We partnered with the Ministry of Health, Ministry of Education, Kenya Forest Service, National Environmental Management Authority, and the Kenya Red Cross on several environmental projects. We engaged Murang’a Technical Training Institute on industry-linked training pathways.
Kakuzi was recognized by the Kenya Red Cross for leadership and social impact. We also supported youth development through sports-kits donations to local teams. These relationships help shape our Company-Community Partnerships and contribute to creating a sustainable society. These initiatives are designed to build capacity, resilience, and independence within surrounding communities and are detailed in our ESG report, available on our website.
Future Plans
The Company’s strategy of diversification and expansion of superfood production continues, and as described in last year’s report, our strategic plan is focused on five key pillars:
- Expanding our production of avocado and macadamia,
- Diversification into new superfoods,
- Diversification into new markets,
- Value addition through our Kakuzi Farm Market
- Continuing development of our sustainability and social performance initiatives.
The positive blueberry results for 2025 have provided the confidence needed to continue expanding this crop. In 2026, a further 15 ha will be added to the existing 10 ha of blueberries, with the potential to increase this by 25 ha a year thereafter.
This venture has the potential to significantly increase the Company’s revenue streams, diversify markets and logistics routes, and reduce our exposure to any single crop.
As well as expanding our existing crops and the new blueberry venture, developing a non-agricultural income stream has long been an objective. Management is actively exploring various options to enhance value for shareholders. I look forward to briefing shareholders on these developments as more concrete plans are formulated.
Our need to continue expanding agricultural technological initiatives is now more important than ever as we face emerging challenges from pests and diseases, the impacts of adverse weather and changing legislation around plant protection products. We will continue investing in both people and technology to meet these challenges.
Market Trends & Outlooks
Further diversification of products, markets, and logistics routes is still required to mitigate risks, many of which are beyond our control. Geopolitical tension in the Middle East has disrupted logistics routes for over two years, and continues to do so.
Competition in Europe’s avocado market is intensifying, and the need for Kenyan producers to deliver high-quality fruit is critical. Long transit times for fresh produce from East Africa to Europe impairs our ability to compete, especially as logistics from key competitors, such as Peru and South Africa, improve.
The development of Asian and Indian markets for Kenyan fresh produce has always been a priority, but perhaps now the need for further market access is key. Last year, we also noted the need for market access into North America; this remains an aspiration and to this end we are engaged with the relevant government bodies to begin this complex process.
Macadamia markets continue to show strong demand, but we need to balance the expectation of high international prices with the fundamental need to increase consumption. Having a competitive source of macadamia expands the range of products in which the kernel is used, thereby improving consumer awareness. We have witnessed this in our cold pressed oil range, where consumers are now actively choosing this oil over traditional alternatives.
A key objective for Kenya must be to increase the domestic consumption of quality Kenyan macadamia kernel rather than rely exclusively on export markets. It is ironic that, as a country ranked third among the world’s producers, we have little domestic promotional activity and consumption.
The commercialisation of our blueberry production unit is finally becoming a reality. In time, we believe this venture has the potential to add a significant revenue stream to the Company. Demand for quality blueberries continues to increase, and given our location and resources, we are well placed to become East Africa’s leading producer.
Dividend
Your Board recommends a first and final dividend of Ksh 16.00 per share.
Acknowledgements
The past year has not been without its challenges, and we remain immensely grateful to you, our shareholders, for your support. The Board also extends its appreciation to the management and staff for their dedication to duty and commitment to our corporate vision and mission.
We also extend gratitude to all our stakeholders from the County Government of Murang’a, National Government officials and agencies, buyers, suppliers, business partners and service providers for their support, which continues to drive our success.
Nicholas Ng'ang'a, Board Chairman, Kakuzi Plc
24th March 2026
