Kakuzi Plc operational and financial developments

Agribusiness firm Kakuzi Plc has undergone significant operational and financial shifts. The company recently signed a Collective Bargaining Agreement with the Kenya Plantation and Agricultural Workers Union, granting over 3,500 employees a staged wage increase of 15% through 2027. To improve efficiency and climate adaptation, the firm is also expanding its digital transformation through a new Digital Agricultural Transformation Department, utilizing AI, machine learning, and drone-based surveillance.

Despite these internal developments, Kakuzi Plc reported a 97.65% drop in half-year pre-tax profit, falling to KSh 10.4 million from KSh 435.2 million the previous year. This decline was largely attributed to the macadamia sector, which moved from an operating profit to an operating loss due to rising global supply and weak demand. The avocado segment also faced pressure from excess supply. Furthermore, geopolitical instability in the Middle East impacted shipping routes and freight costs, though the blueberry and forestry segments showed growth.