Kenya’s Sasini Plc moves to sell Nairobi avocado plant amid strategy shift

Sasini Plc, one of Kenya’s oldest agricultural groups, majority owned by Kenyan agribusiness investors, the Merali family, has put its avocado processing facility in Nairobi up for sale, signaling a potential recalibration of its diversification strategy within the horticulture segment.

The developments come after the agri-company said in January that it returned to profitability in the financial year ended September 2025, closing a bruising chapter marked by volatile commodity prices and rising costs. The company posted a net profit of Ksh188 million ($1.46 million), reversing a Ksh562.9 million ($4.36 million) loss recorded a year earlier, as firmer global coffee and macadamia prices lifted earnings.

Repositioning within the avocado value chain

The plant, owned by Sasini Avocado EPZ Limited, boasts a processing capacity of up to eight tonnes per hour and is equipped with modern infrastructure, including refrigeration systems capable of handling up to four export containers simultaneously.

The company described the facility as relatively new and ready for immediate commercial use, targeting investors seeking to enter or expand in the fast-growing avocado export market.

Offered on an “as-is, where-is” basis, the plant is available either as a going concern or through an outright asset acquisition, providing flexibility for potential buyers looking to scale operations quickly.

Financial recovery shapes strategic rethink

The divestment comes as Sasini navigates a financial turnaround after a rebound that was driven by pricing rather than volume-led expansion or structural cost improvements. Revenue rose 22.5% year-on-year to a record Ksh8.44 billion ($65.33 million), extending a post-pandemic recovery that has seen sales double since 2020.

Beneath the recovery, cash flow told a more cautious story. Operating cash flow deteriorated sharply to a Ksh450.9 million ($3.49 million) deficit, from a Ksh390.8 million ($3.02 million) inflow a year earlier, largely due to rising working capital needs. After capital expenditure, free cash flow fell to negative Ksh647 million ($5.01 million), tightening liquidity. Cash balances dropped nearly 40% to Ksh559.2 million ($4.33 million), while borrowings of about Ksh498 million ($3.86 million) reappeared on the balance sheet.

Cost pressures remain structural. Cost of sales absorbed almost 88% of revenue, limiting operating leverage despite higher prices. Despite the return to profit, the company continues to grapple with weak cash flows, tightening liquidity, and renewed borrowing pressures, factors that may be influencing its decision to streamline non-core investments.

Portfolio realignment under review

Sasini Tea is a leading agribusiness firm specializing in tea, coffee, avocado, and macadamia nut production for local and international markets. The Merali family are the largest shareholder of agribusiness giant Sasini Tea, holding over 65%  stake in the agri-business.

Sasini ventured into avocado farming between 2017 and 2020 as part of efforts to diversify beyond its traditional tea and coffee businesses. The planned sale now suggests a reassessment of that strategy as the company refocuses on capital efficiency and core operations.

The potential divestment could reshape Sasini’s agribusiness portfolio, marking a shift in how the company positions itself within East Africa’s evolving agricultural export landscape.