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Kakuzi’s H1 profit drops on weak avocado and tea prices

Avocado earnings dropped to Sh395 million from Sh951 million on lower crop valuations.

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by VICTOR AMADALA

Business21 August 2025 - 10:37
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In Summary


  • Tea recorded a wider loss of Sh27.5 million, down from Sh3.5 million, as prices weakened.
  • Global tea prices are experiencing a decline, particularly impacting producers like Kenya. 

Kakuzi MD Chris Flowers, President William Ruto and Governor Irungu Kang’ata at the recent Murang’a Investment Conference /FILE





Low evaluation of avocado and a drop in global tea prices suppressed the six-month earnings of Nairobi Securities Exchange (NSE) listed agribusiness firm Kakuzi leading to a 15 per cent drop.

The financial statement released on Wednesday shows that net profit dropped to Sh295.54 million from Sh347.5 million in the corresponding half-year in 2024, with gross earnings also dropping to Sh409.6 million from Sh486 million.

Kakuzi exported 165 containers (801,840 cartons) of avocados to Europe, competing with supplies from Peru, South Africa, and Colombia.

Avocado earnings dropped to Sh395 million from Sh951 million on lower crop valuations.

Tea recorded a wider loss of Sh27.5 million, down from Sh3.5 million, as prices weakened.

Global tea prices are experiencing a decline, particularly impacting producers like Kenya. 

This downturn is driven by a combination of factors, including increased global supply, sluggish demand, and the depreciation of the Kenyan shilling. 

The World Bank projects a further dip in tea prices next year, adding to the challenges faced by tea farmers. 

Even so, the macadamia division delivered a profit of Sh319 million against Sh 32 million last year, supported by buoyant global demand and improved pricing.

Blueberries turned profitable, posting Sh13 million compared to a Sh17 million loss.

 Within the period under review, Kakuzi’s total revenue grew to Sh1.51 billion, up from Sh1.17 billion realised within the same period last year.

Speaking when he confirmed the half-year 2025 trading results, Kakuzi managing director Chris Flowers said the firm has adopted strategic operating strategies to facilitate growth within a challenging operating environment.

“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,” F lowers said.

He added that the earlier experienced shipping route challenges are also beginning to stabilise with an increasing number of voyages returning to the Red Sea routing.

“The international avocado market, he disclosed, has been well supplied, with price levels reflecting higher supply.”

He reiterated that the firm’s board remains committed to continuing to diversify the firm’s operations and maintain its focus on responsible business models.

“Our operating mandate is firmly rooted in our purpose of ‘Growing Together’, lifting others as we grow through a process of meaningful stakeholder engagement”, he said.

He expressed concern that the firm had recently faced land invasion cases by unscrupulous individuals.

“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 said.

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