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Kakuzi Plc, the agricultural cultivation and processing company partly owned by Kenyan businessman John Kimani, reported a 15 percent drop in profit for the first half of 2025, weighed down by lower avocado crop valuations despite stronger performances from macadamia and blueberry exports.
For the six months ended June 30, 2025, profit fell to Ksh295.5 million ($2.3 million) from Ksh347.5 million ($2.68 million) a year earlier, according to the firm’s latest financial report. The decline came even as turnover rose sharply by 28.6 percent to Ksh1.51 billion ($11.68 million), boosted by rising demand for macadamia and the recovery of its blueberry business.
Management attributed the weaker profit to avocado prices, which were hit by oversupply in key European markets, and to continued losses in the tea segment. To cushion against such swings, Kakuzi pointed to gains from diversification, including value-added products like cold-pressed macadamia oil, packaged nuts for retail, and a steady climb in blueberry demand.
Macadamia and blueberry lift results
The macadamia division delivered the strongest growth, with profit climbing to Ksh319 million ($2.47 million), compared with just Ksh32 million ($247,302) a year earlier, supported by buoyant global demand and firmer kernel prices. Blueberries also added momentum, posting a profit of Ksh13 million ($100,466) after a loss of Ksh17 million ($131,379) in 2024.
Avocados told a different story. Prices in Europe remained under pressure as Peru, South Africa, and Colombia flooded the market. Kakuzi exported 165 containers—more than 800,000 cartons—but returns were weaker as a result, dragging down divisional earnings. The tea business deepened its losses, recording a Ksh27.5 million ($212,526) shortfall compared with a Ksh3.5 million ($27,049) loss a year earlier. Forestry products continued to sell but at reduced profitability, reflecting slower activity in Kenya’s construction sector.
Focus on diversification and sustainability
Alongside its traditional crops, Kakuzi has been expanding its portfolio of value-added products such as roasted macadamia snacks and macadamia oil, while also investing in long-term resilience. Recently, the company completed a major upgrade of its Nginye dam, boosting water storage capacity by 1 million cubic meters to help safeguard production against climate risks.
Kakuzi, which is listed on the Nairobi Securities Exchange, is 34.54 percent owned by John Kimani, who ranks as one of Kenya’s richest individuals. Beyond Kakuzi, his influence in Kenya’s economy extends through other holdings, including shares in Centum Investments and Nation Media Group. Retained earnings at the firm slipped 6 percent to Ksh5.34 billion ($41.25 million), down from Ksh5.68 billion ($43.88 million) last year.
