Two of Kenya’s oldest listed agricultural firms — Williamson Tea Kenya Plc and Kapchorua Tea Kenya Plc — have issued profit warnings for the financial year ending 31st March 2025.
- •Both firms now expect their full-year earnings to fall by more than 25% compared to FY2024, citing worsening conditions in the global tea market.
- •In coordinated filings on 20th May 2025, the companies highlighted a combination of oversupply, weak international demand, and an appreciating Kenya shilling as key factors squeezing their bottom lines.
- •While Williamson Tea sank into a loss in H1, Kapchorua remained modestly profitable.
The divergence underlines differences in scale, cost management, and market positioning — despite their shared ownership and strategy.
“The drop in profits is largely attributed to depressed market prices following an oversupply of tea against demand as well as a strong Kenya shilling against the US Dollar,” .
the statements read — worded identically in both disclosures.
Half-Year Results Reflect Mounting Pressure
The gloomy outlook has already materialized in their half-year financial results for the period ended 30th September 2024.
| Metric | Williamson Tea | Kapchorua Tea |
|---|---|---|
| Revenue (H1 FY2025) | KSh 1.98 Billion | KSh 1.09 Billion |
| Revenue (H1 FY2024) | KSh 2.25 Billion | KSh 933 Million |
| YoY Revenue Change | –12% | +17.3% |
| Net Profit/(Loss) | –KSh 122.4 Million | KSh 18.2 Million |
| Net Profit (H1 FY2024) | KSh 477.1 Million | KSh 218.1 Million |
Both firms have expanded production over the past five years, but a global oversupply has kept tea prices under pressure. Kapchorua has consistently fetched higher prices per kilo than its larger peer, Williamson.
| Year | Company | Tea Produced (Kgs ‘000) | Tea Sold (Kgs ‘000) | Revenue (KSh ‘000) | Avg Price/Kg (KSh) |
|---|---|---|---|---|---|
| 2024 | Williamson | 18,911 | 16,986 | 4,194,358 | 256.30 |
| Kapchorua | 8,691 | 7,316 | 2,193,918 | 299.88 | |
| 2023 | Williamson | 15,179 | 15,990 | 4,019,821 | 251.34 |
| Kapchorua | 6,011 | 6,470 | 1,773,794 | 274.15 | |
| 2022 | Williamson | 16,679 | 16,175 | 3,507,898 | 216.82 |
| Kapchorua | 5,822 | 5,888 | 1,415,471 | 240.37 | |
| 2021 | Williamson | 16,909 | 18,817 | 3,734,037 | 198.42 |
| Kapchorua | 6,746 | 7,078 | 1,445,640 | 204.16 | |
| 2020 | Williamson | 15,612 | 14,694 | 3,036,905 | 206.66 |
| Kapchorua | 5,906 | 5,437 | 1,134,302 | 208.66 |
Despite producing and selling less, Kapchorua consistently earns more per kilogram of tea, positioning it as a more premium and margin-efficient player in the market.
Though both firms operate under the same parent group and are often viewed as sister companies — even sharing the same company secretary — their financial trajectories are diverging:
- •Williamson, with a larger production footprint, has greater exposure to international market swings and FX headwinds.
- •Kapchorua, operating on a leaner scale, has weathered the storm better by maintaining pricing strength and cost discipline.
