Agricultural firm Kakuzi Group has reported a dip in its half-year profits as weak avocado prices cut into earnings, despite strong sales growth from other crops. The company posted a net profit of Sh295 million for the six months ending June 2025, down from Sh347 million a year earlier. This translates to a 15 percent decline in after-tax earnings. Kakuzi’s revenues jumped 28.6 percent to Sh1.5 billion, thanks to stronger sales of macadamia, blueberries, tea, and avocados. But higher production and operational costs— which nearly doubled to Sh882 million took a heavy toll on the bottom line.
The biggest drag came from the avocado business, which has long been Kakuzi’s main earner. Profits from the crop dropped by 58.4 percent, reflecting weak global prices and stiff competition from other major producers such as Peru and Colombia. On the flip side, the company’s macadamia business was the star performer, with profits growing almost tenfold. Blueberries and tea also posted healthy sales, showing that Kakuzi’s diversification strategy is beginning to pay off.
Still, the avocado slump was too steep to ignore. Analysts say this underlines the risk of relying heavily on one crop in the unpredictable global commodities market. Kakuzi has in recent years been expanding into macadamia and blueberries to cushion itself against such shocks. The company is also exploring new export markets in Europe, Asia, and the Middle East, where demand for premium produce continues to rise. Even with the dip in profits, Kakuzi remains one of Kenya’s most prominent agricultural exporters. Its performance is closely watched as a reflection of both the opportunities and challenges facing the wider sector.
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