Kakuzi PLC has announced plans to strengthen its avocado smallholder base as part of a shared prosperity business plan.
The firm said that it will also focus on agricultural production expansion and diversification projects for its macadamia, blueberry, livestock, and commercial forestry business lines.
Speaking during the Nairobi Securities Exchange (NSE) listed firms 93rd Annual General Meeting held virtually, Kakuzi PLC Chairman Nicholas Ng'ang'a said the firm will invest more than Sh400 million in capital expenditures (CAPEX).
It will also focus on upscaling its smallholder operations value to complement its production capacities and boost the global positioning of Kenyan avocados.
“It's critical that the markets only receive good quality fruits from Kenya, and to achieve this, building knowledge of the market requirements amongst farmers is very important,” Ng'anga said.
The chairperson added that with a 2,500 strong workforce, the firm continues to invest in developing its core crops of avocado, forestry, and cattle and experimenting with the new blueberry venture.
Ng'anga added that the firm is also exploring value addition opportunities in a number of these crops and hope that further exciting opportunities to diversify our income stream will present themselves when fully appraised.
"The markets for Kakuzi's avocados remained solid, despite the almost complete closure of the food retail sector across our main markets. We expect that there will be some recovery in 2021, but this is not guaranteed. To mitigate this, we continue to trade with our traditional buyers as well as some key new players across 14 different countries," Ng'ang'a said.
At the AGM, the firm's shareholders unanimously voted for Sh18 dividends per share, representing a 28.5 per cent growth from the Sh14 dividends paid out the previous year.
Ng'anga said that the company has secured lucrative markets for Kenyan Agriproduce such as avocados and macadamia and will continue adopting a shared prosperity approach by integrating smallholders.
As part of the sustainability and governance journey, Kakuzi has developed an Operational-Level Grievance Mechanism (OGM) to enhance the timely and sensitive resolution of grievances that any of its employees or stakeholders may have with the firm.
Last year, the firm employed a team of 13 public health officers to assist in protecting its 2,900 strong workforces from Covid-19 as part of its employee and community health promotion program.