A group of Kakuzi Plc (NSE: KUKZ) shareholders has thrown its support behind the agribusiness firm’s diversification and expansion strategy following a familiarisation tour of the company’s operations in Murang’a County. The tour showcased the firm’s commitment to sustainable agricultural practices and its vision for future growth.
Kakuzi Plc, known for its production of superfoods like avocados and macadamia, has unveiled plans to diversify its agricultural portfolio as part of a strategy aimed at both export and domestic market growth. This sustainability-focused agenda will see the company invest Kshs 100 million next year in areas such as Agricultural Technology (Ag-Tech) integration, water stewardship, and reducing carbon emissions.
Sustainability and Expansion as Core Strategy
Speaking during the shareholder tour, Kakuzi Plc Managing Director Chris Flowers emphasized that the company’s diversification efforts will include expanding its product range with the introduction of new commercial crops like blueberries and further developing its livestock business. Flowers highlighted the firm’s commitment to sustainable agriculture, focusing on reducing waste and emissions while leveraging Ag-Tech to enhance productivity.
“Our expansion strategy is about minimizing shareholder risks while maximizing returns by diversifying our product portfolio. This allows us to navigate the complexities of the global market more effectively,” Flowers said. He added that Kakuzi’s export crops—avocado, macadamia, and potentially blueberries—are already shipped to markets in Europe, China, India, the Middle East, America, Japan, and the UK.
Weathering Global Challenges
Flowers also acknowledged the increasingly difficult environment for agribusinesses globally, citing factors beyond the company’s control. “The complexity we face today is greater than it was during the Covid pandemic. We are now dealing with significant challenges such as complex global logistics due to the closure of the Red Sea shipping routes and the unpredictable impacts of climate change on agriculture,” Flowers explained.
Despite these challenges, Kakuzi remains optimistic that its investment in climate-smart agriculture will ensure long-term sustainability. The company is focusing on reducing its carbon footprint while ensuring efficient use of water resources.
Shareholder Engagement and Growing Investor Confidence
Kakuzi Board Chairman Nicholas Ng’ang’a underscored the importance of maintaining strong relations with shareholders, noting that the firm had grown beyond a typical farm enterprise to become an integrated international agribusiness player. The familiarisation tour, he said, is part of a deliberate effort to deepen investor relations by offering shareholders firsthand experience of the company’s operations.
“Our shareholders are our primary stakeholders, and we are proud they can visit us to see how their investment is operating. We are particularly pleased to showcase our climate-smart agriculture initiatives, which speak to the sustainability of their investment portfolio,” Ng’ang’a said.
The firm’s latest shareholder register revealed a steady growth in investor confidence, with the number of shareholders rising to 1,395 by the end of 2023, up from 1,362 in the previous year. The shareholder profile includes 1,154 local individual investors holding more than 8 million shares, alongside 97 local institutional investors with over 5.5 million shares.
Diversification to Reduce Risks and Maximize Returns
Flowers reiterated that Kakuzi’s market diversification efforts are designed to shield the company from external risks. By targeting both export and domestic markets, Kakuzi aims to reduce dependence on any single revenue stream. “We believe that by diversifying into crops like blueberries and further expanding into the livestock sector, we will minimize risks and optimize returns for our shareholders,” he said.
As part of its broader strategy, Kakuzi is also exploring opportunities to add value to its produce for the domestic market, a move that could bolster its revenue streams and strengthen its foothold in the region.
