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Kakuzi Plc, the Nairobi-listed agricultural producer partly owned by Kenyan businessman John Kimani, has won temporary relief from Kenya’s Supreme Court in a long-running land dispute that sits at the center of its operations and investor outlook.
In a ruling issued by a six-judge bench, the Supreme Court suspended a lower court decision that awarded Makuyu Golf Club about 72 acres of land claimed by Kakuzi. The order will remain in force pending the hearing and determination of the company’s second appeal, giving Kakuzi time as the long-running dispute moves to its final stage.
Kenya’s land ruling sparks debate
The latest court action comes as the company faces broader scrutiny over land use. In December Kenya’s National Land Commission directed Kakuzi to surrender 3,200 acres to local communities, citing historical land injustices. The decision, issued on Nov. 14, 2025, ordered land redistribution, verification of affected claimants, regularization of public utilities and the relocation of schools and other public facilities.
Rights groups welcomed the ruling but said it fell short of addressing deeper grievances. Communities represented by the Kenya Human Rights Commission and the Ndula Resource Centre described the decision as incomplete, arguing that the commission dismissed nine major claims. They said unresolved issues include expired leases, historical evictions and decades of alleged abuses, including claims of violence and forced displacement.
Kakuzi fights land order, expands crops
Kakuzi has pushed back against the land directive, warning investors that it poses a “material risk” to its operations. The company argues that the order threatens constitutionally protected property rights and could affect its 3,400 employees and 1,400 shareholders. It has said it will pursue all available legal options.
The legal pressure comes as the company makes efforts to stabilize its business. Kakuzi has expanded beyond traditional crops adding roasted macadamia nuts and macadamia oil to its product range while investing in climate resilience. An upgrade to the Nginye dam added 1 million cubic meters of water storage, aimed at securing long-term production.
Avocado slump hits half-year profit
Financially, the company reported a weaker first half. Profit for the six months ended June 30, 2025, fell 15 percent to Ksh295.5 million ($2.3 million), from Ksh347.5 million ($2.68 million) a year earlier. The drop was driven by lower avocado valuations, even as macadamia and blueberry exports performed better.
Turnover rose 28.6 percent to Ksh1.51 billion ($11.68 million), reflecting stronger demand for macadamia products and a recovery in blueberries. Avocado prices were hit by oversupply in European markets, while the tea business continued to post losses. For investors the outcome of the land disputes now looms as a key factor alongside crop prices and export demand.
