Kenyan listed integrated agro-business firm Kakuzi PLC has announced plans to invest more than KSh. 400 million in capital expenditures (CAPEX) this year to upscale the operations of its smallholder base while boosting the global positioning of Kenyan avocados.
“It’s critical that the markets only receive good quality fruits from Kenya, and to achieve this, building knowledge of the market requirements amongst farmers is very important,” Kakuzi PLC Chairman Nicholas Ng’ang’a said during the company’s 93rd Annual General Meeting held virtually.
Alongside the smallholder development plans, the firm says it is focusing on agricultural production expansion and diversification projects for its Macadamia, Blueberry, Livestock, and commercial forestry business lines.
The Company, which currently employs over 2,500, will continue to invest in developing its core crops of avocado, macadamia, forestry and cattle and experimenting with the new blueberry venture.
According to Mr Nganga, the firm is also exploring value addition opportunities in a number of these crops and hope that further exciting opportunities to diversify our income stream will present themselves when fully appraised.
“The markets for Kakuzi’s avocados remained solid, despite the almost complete closure of the food retail sector across our main markets. We expect that there will be some recovery in 2021, but this is not guaranteed. To mitigate this, we continue to trade with our traditional buyers as well as some key new players across 14 different countries,” Ng’ang’a said.
Kakuzi Dividends
At the AGM, the firm’s shareholders unanimously voted for a KSh. 18 dividends per share, representing a 28.5% growth from the KSh. 14 dividends paid out the previous year.
The Company he added has secured lucrative markets for Kenyan Agri produce such as avocados and macadamia.
Last year, Kakuzi achieved robust results for the year, despite the uncertainty in its main sales markets caused by the COVID-19 Pandemic. The firm posted a Kes. 848 million pre-tax profit representing a 16% drop from Kes. 1,014 billion realized the previous year.
The firm’s avocado and macadamia export volumes were higher than 2019 but not sufficient to mitigate a significant reduction of 34% in the price of avocados due to higher global supply.
READ;
Kakuzi to resume UK Avocado Exports After 8 Months
Kakuzi Net Earnings Drop 13% to KSh 622 Million, ups Dividends
Kakuzi Plc Appoints Nicholas Nganga as Chairman, Dr. John Kibunga Kimani Joins Board
