This archive report was first published on 19 May 2021.
On May 19, 2021, Kakuzi PLC Chairman Nicholas Ng'ang'a emphasized the importance of providing high-quality fruits to the Kenyan market, stating that building knowledge of market requirements amongst farmers is crucial.
During the 93rd Annual General Meeting of the Nairobi Securities Exchange (NSE) listed firm, Ng'ang'a announced that Kakuzi would invest over Sh400 million in capital expenditures this year, focusing on upscaling its smallholder operations to complement its production capacities and boost the global positioning of Kenyan avocados.
The firm, which employs a 2,500-strong workforce, continues to invest in developing its core crops of avocado, macadamia, forestry, and cattle, while also experimenting with the new blueberry venture.
Ng'ang'a noted that investments in technology to reduce the company's environmental footprint and enhance product quality are progressing well. He also stated that the firm is exploring value-addition to a number of these crops, with the hope that further exciting opportunities to diversify income streams will present themselves when fully appraised.
Despite the challenges posed by the COVID-19 pandemic, Kakuzi posted a pre-tax profit of Ksh848 million, representing a 16% drop from 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.
At the AGM, the firm's shareholders voted for Ksh18 dividends per share, representing a 28.5% growth from the Ksh14 dividends paid out the previous year, making Kakuzi PLC one of the best performing firms at the NSE in terms of return on investment.
