Kenyan firm Sasini calls off $61.1 million estate sale as buyer defaults

Kenyan agribusiness firm Sasini has called off the KSh7.9 billion ($61.1 million) sale of its Gulmarg coffee estate after the buyer failed to meet key payment deadlines. Management confirmed the cancellation in its latest financial disclosures, noting the asset will return to normal operations.

The aborted deal represents a significant setback for the Nairobi Securities Exchange-listed company. The transaction was valued at more than Sasini’s entire stock market capitalization and would have handed the company a cash injection double the property’s KSh3.78 billion ($29.2 million) book value.

Failed sale forces Sasini strategic pivot

Sasini first classified the Gulmarg Division, located within Mweiga Estates, as a discontinued operation early this year. Executives stated that the buyer missed critical contractual timelines, forcing the board to strip the property of its held-for-sale status and reintegrate it into the company’s core farming portfolio.

The planned divestment was part of a broader effort to clean up Sasini’s balance sheet by shedding specific land holdings. In previous restructuring moves, the company sold its office building on Nairobi’s Loita Street for KSh600 million ($4.6 million) and cut losses on underperforming Nyeri coffee estates.

Financial records show the Gulmarg estate returned to profitability in the year ended September 2025, posting a net profit of KSh10.6 million ($82,000). That performance reversed a KSh6.3 million ($48,700) loss from the prior year, driven largely by the rising value of its crops.

Commodity rally drives Sasini earnings rebound

Sasin also moved back into the black last year, recording a total net profit of KSh188 million ($1.45 million). Higher global commodity prices helped Sasini overcome a KSh562.9 million ($4.36 million) loss from 2024, when volatile export markets and high input costs hurt operations.

While the coffee deal collapsed, Sasini still intends to sell its Nairobi avocado processing plant to streamline its horticulture business. The facility can process eight tons of fruit per hour and features cold-storage infrastructure capable of managing four export containers at the same time.