Kakuzi Limited
From Wikipedia, the free encyclopedia
| Company type | Public |
|---|---|
| KN: KUKZ | |
| Industry | Agricultural |
| Headquarters | , |
Key people | Nicholas Ng'ang'a, Chairman J. L.G. Maonga, Secretary C. Flowers, Managing Director |
| Products | Tea, Livestock, Avocados, Forestry Products, Blueberries |
| Parent | Camellia PLC |
| Website | www |
Kakuzi PLC is a listed Kenyan superfood producer trading on the Nairobi and London Stock Exchange, engaging in the cultivation, processing and marketing of avocados, blueberries, macadamia, tea, livestock and commercial forestry. Kakuzi continuously strives to build a sustainable agricultural portfolio that can mitigate weather risks to which the sector has historically been subjected. The company’s development plans are in full swing, with significant additional areas of avocado and macadamia being planted, and trials for blueberry development in progress.
The sisal venture
The history of Kakuzi dates back to the colonial period with the arrival of Mr. Donald Farquharson Seth-Smith[1] in British East Africa in 1906. A graduate of Oxford, he was a distinguished athlete, and upon arrival in Kenya, he set up his agricultural venture. In 1907, Donald, together with Mr. Mervyn Ridley and Lord Cranworth they bought land (10117 ha) in Makuyu where they established their agribusiness venture.[2] The farm was run by Mervyn and Donald who experimented with different crops before settling on sisal. They named the estate Sisal Ltd[3] and with increased demand for sisal, the business flourished.
The coffee and tea venture
Kakuzi Fiberlands limited was incorporated in 1919, with interests in sisal and Coffee. It neighboured Sisal Limited and during this time, Sisal limited diversified its portfolio to include tea which was grown in Nandi Hills. This prompted Kakuzi, then majority-owned by Eastern Produce to acquire Siret Tea Estate in 1948.
Merger
The two firms merged in 1966 to form Kakuzi Plc. In 1987 sisal production ceased owing to increased competition from synthetic fibers. The focus was therefore shifted towards other crops. Following a significant drought in 1984, the coffee plantations started to show symptoms of a serious fungal disease, Fusarium, which had been imported from poorly run neighbouring estates. New planting was not an option as this became infected as well and diversification into other crops resulted. Avocados were particularly viable and planted in large areas. Another diversification, on land unsuitable for more valuable crops, is forestry. Planting started in 1992, and by the end of 2010, some 1242 Hectares had been planted. Cattle were a further diversification during the 1980s, when the size of the herd peaked at 7,500. As of August 2011, the herd was 4,407.
Acquisition by Camellia
As early as 1948, interests in Kenya's agricultural industry had gained shape. Eastern Produce acquired tea estates in Nandi (Siret Tea Estate). Camellia acquired majority interests in Eastern Produce limited which had interests in Kenya and Malawi. By 1990, Camellia had majority interests in Kakuzi through its subsidiaries; Eastern Produce Plc (34.19%) and Lawrie Group Plc (7.53%). In 1991, Linton Park Plc acquired Eastern Produce and further increased their holdings to 42.83%. By 1994 Linton Park, a subsidiary of Camellia held 50.1% of the outstanding shares.[4] Currently[when?] the stake is held by two subsidiaries; Bordue Ltd (26.06%) and Lintak Investments Ltd. (24.64%). Notably, the largest individual shareholder is John Kibunga Kimani with a 32.20% stake. He is also a Non-Executive Director effective November 1, 2020.
