Kakuzi Avocado Profits Surge as Kenya Export Earnings Recover

Kakuzi Plc has restored growth momentum and doubled its dividend after a sharp rebound in avocado profits. The Nairobi Securities Exchange-listed producer has swung back into the black on the strength of avocado, macadamia and blueberry exports. The company is also pushing a deliberate diversification strategy to cushion earnings from global shocks.

This marked a sharp turnaround from the pre-tax loss of KSh167 million recorded in 2024. Net profit after tax reached KSh387.5 million, strengthening the group’s capacity to reward shareholders while continuing to fund long-term capital investment and operational resilience.

Avocados remained the company’s core earnings driver. Segment profits nearly doubled to KSh709 million in 2025, up from KSh361 million a year earlier. Export volumes increased to 525 containers from 446, reflecting a 23% rise in output. The performance highlights how stronger throughput, combined with resilient demand across Europe and other international markets, can rapidly improve earnings momentum even amid volatile global trading conditions.

Managing Director Chris Flowers told shareholders that fresh avocado exports remain commercially attractive as long as the company maintains strict quality standards. He described Kakuzi’s growth strategy as deliberate and asset-preserving, emphasising that the company sees itself not only as a farming business, but also as a long-term contributor to economic development. For investors, that signals a focus on disciplined capital allocation rather than aggressive, debt-driven expansion.

Meanwhile, Chairman Nicholas Ng’ang’a warned that geopolitical tensions and global market disruptions continue to pose risks to the avocado business. However, management believes a broader product portfolio and wider export-market exposure will help cushion earnings volatility and stabilise cash flows over time.

Diversification strategy gains traction

Kakuzi’s diversification strategy is increasingly contributing to earnings resilience.

The macadamia business posted a strong recovery, generating profits of KSh365 million in 2025 compared with KSh69 million in 2024, supported by improving international demand and firmer prices. Flowers noted that sustaining long-term demand will require expanding how consumers engage with macadamia products, pointing to opportunities in branding, product innovation and downstream value-added processing.

Blueberries also returned to profitability. The segment recorded a profit of KSh5 million, reversing the KSh19 million loss posted the previous year. Production increased to 90 tonnes from 53 tonnes, reflecting stronger asset utilisation and early signs that blueberries could become a more meaningful contributor as operations scale. Although still relatively small within the broader portfolio, the business expands Kakuzi’s exposure to high-value superfood markets with different seasonal cycles and pricing dynamics from avocados.

Alongside crop diversification, the company continues investing in climate resilience and water security. Kakuzi expanded its rainwater storage capacity by one million cubic metres to strengthen irrigation capabilities and reduce exposure to climate variability. Over time, the investment should help protect yields and lower dependence on more costly water sources.

Management also used the annual general meeting to dismiss speculation around potential land sales. Executives stressed that Kakuzi’s land holdings are not for sale, describing them as the foundation of the company’s future growth and a long-term strategic asset. For shareholders, the position reinforces continuity in the company’s farming footprint and removes uncertainty around possible asset disposals.

For investors tracking Kakuzi Plc and the wider East African export agriculture sector, the 2025 recovery suggests that disciplined diversification into premium agricultural products — supported by water security and long-term land stewardship — can offset external shocks and sustain shareholder returns.

Key indicators to watch now include pricing trends in European avocado and macadamia markets, execution on value-added macadamia products, and the pace at which blueberries scale from a niche operation into a more material earnings contributor.

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