Kenya’s Kakuzi returns to profit, doubles dividend on $26.6 million avocado sales

Kakuzi Plc, the Nairobi-based agricultural firm partly owned by Kenyan businessman John Kibunga Kimani, returned to profit in 2025 after a loss a year earlier, supported by stronger avocado sales, lower costs, and stable income from forestry, livestock, and blueberries. The recovery led the company to double its dividend, signaling renewed operational confidence.

Dividend doubles after profit recovery

The leading agricultural company, headquartered in Nairobi and operating in Makuyu and Nandi Hills in Kenya, reported a net profit of Ksh387.6 million ($3.01 million) for the year ended 2025, compared with a loss of Ksh131.7 million ($1.01 million) in 2024, according to its latest financial statements. Pre-tax profit rose to Ksh568.4 million ($4.37 million), reversing a pre-tax loss of Ksh166.7 million ($1.28 million) recorded a year earlier.

The improved earnings allowed the board to recommend a final dividend of Ksh16 ($0.12) per share, totaling Ksh313.6 million ($2.42 million), double the payout declared in 2024. The stronger performance came as revenue increased to Ksh5.37 billion ($41.4 million) in 2025 from Ksh4.79 billion ($36.9 million) a year earlier. At the same time, cost of sales declined to Ksh3.57 billion ($27.5 million) from Ksh4.13 billion ($31.8 million), helping widen margins.

Avocados drive Kakuzi revenue growth; Europe sales rise

Avocados remained Kakuzi’s biggest revenue contributor. Sales from the segment rose to Ksh3.46 billion ($26.6 million) from Ksh2.56 billion ($19.7 million). Revenue from forestry, livestock, arable farming and blueberries also climbed to Ksh677.06 million ($5.21 million) from Ksh595.71 million ($4.6 million). However, macadamia sales fell to Ksh834.88 million ($6.43 million) from Ksh1.255 billion ($9.67 million), reflecting softer demand and pricing pressures.

Regionally, revenue from the United Kingdom and the rest of Europe increased to Ksh3.43 billion ($26.43 million) from Ksh2.78 billion ($21.48 million). Domestic sales in Kenya edged higher to Ksh1.2 billion ($9.24 million) from Ksh1.16 billion ($8.93 million), while sales in other markets declined to Ksh735.48 million ($5.66 million) from Ksh841.9 million ($6.48 million).

Managing Director Chris Flowers said Kakuzi is expanding its diversification strategy to support growth and reduce exposure to market swings. “We have increased irrigation capacity by adding one million cubic meters of rainwater storage, bringing total capacity to 13 million cubic meters,” Flowers said, noting that the investment strengthens water security across its farms.

Kakuzi’s recovery lifts assets, retained earnings

Kakuzi Plc remains one of East Africa’s established agricultural producers, growing and marketing avocados, blueberries, macadamia, tea and livestock while also managing commercial forestry operations. John Kibunga Kimani holds a 33.53 percent stake, equivalent to 6,570,947 shares, making him the company’s largest shareholder.

As a result of the impressive results, the company’s balance sheet also improved. Total assets increased to Ksh6.82 billion ($52.5 million) as of Dec. 31, 2025, from Ksh6.6 billion ($50.8 million) a year earlier. Total equity rose to Ksh5.57 billion ($42.9 million) from Ksh5.33 billion ($41.06 million), while retained earnings edged up to Ksh5.11 billion ($39.4 million) from Ksh5.04 billion ($38.82 million), underscoring the company’s steady financial recovery.