Kakuzi Plc, the Nairobi-based agricultural producer partly owned by Kenyan businessman John Kibunga Kimani, reported a sharp decline in profit for the first six months of 2026, weighed down by weaker avocado production, lower global macadamia prices, and shipping disruptions linked to geopolitical tensions in the Middle East.

Profits fall sharply amid shipping and export headwinds

The Nairobi-based agricultural company with extensive estates in Makuyu and Nandi Hills, posted a net profit of Ksh7.11 million ($55,000) for the half-year ended June 30, 2026, down 97.6 percent from Ksh295.54 million ($2.29 million) recorded in the same period of 2025, according to its unaudited interim financial statements. Pre-tax profit dropped to Ksh10.42 million ($80,800) from Ksh435.25 million ($3.37 million) a year earlier.

The board did not recommend an interim dividend, mirroring its position in the previous year. Total revenue fell 26 percent to Ksh1.12 billion ($8.66 million) from Ksh1.51 billion ($11.72 million) in the first half of 2025. Cost of sales rose to Ksh1.04 billion ($8.04 million) from Ksh882.51 million ($6.84 million), squeezing gross profit down to Ksh114.48 million ($887,400) from Ksh654.33 million ($5.07 million).

Avocado and macadamia revenues decline; European sales contract

Avocados remained Kakuzi’s largest revenue generator, but segment turnover fell to Ksh365.78 million ($2.84 million) from Ksh685.91 million ($5.32 million) as dry weather during the late 2025 fruit expansion phase and extended Cape of Good Hope transit times impacted export volumes and quality. Macadamia sales declined to Ksh305.81 million ($2.37 million) from Ksh427.3 million ($3.31 million) due to global oversupply and softer demand in the United States and China.

The decline in key export lines was partly cushioned by higher sales in forestry, which rose to Ksh202.58 million ($1.57 million) from Ksh178.28 million ($1.38 million), and tea, which climbed to Ksh167.87 million ($1.3 million) from Ksh138.12 million ($1.07 million). All other segments, including blueberries and livestock, contributed Ksh75.68 million ($586,600). Geographically, sales to the United Kingdom and Continental Europe slid to Ksh311.43 million ($2.41 million) from Ksh767.68 million ($5.95 million), while domestic revenue in Kenya rose to Ksh546.63 million ($4.24 million) from Ksh500.2 million ($3.88 million).

Balance sheet remains resilient despite lower liquidity

Kakuzi Plc remains one of East Africa’s major agribusiness operations, cultivating and marketing avocados, blueberries, macadamia, tea, and livestock alongside commercial timber operations. John Kibunga Kimani holds a 33.53 percent equity stake, comprising 6,570,947 shares, maintaining his position as the company’s largest individual shareholder.

Despite the earnings pressure and the payment of Ksh313.6 million ($2.43 million) in final dividends for the 2025 financial year, Kakuzi maintained a stable capital base. Total assets stood at Ksh6.93 billion ($53.71 million) as of June 30, 2026, compared with Ksh7.19 billion ($55.72 million) a year earlier. Total equity stood at Ksh5.26 billion ($40.79 million), while retained earnings closed the period at Ksh5.12 billion ($39.72 million).