Counties

Kakuzi shareholders approve Sh22 dividend as firms plans diversification

kakuzi

A Security guard stands at the entrance of Kakuzi PLC offices in Muranga County on October 14, 2020. PHOTO | EVANS HABIL | NMG

geraldandae

Summary

  • The firm is also eyeing diversification into new crops such as macadamia and blueberries as well as rearing goats for meat.
  • Kakuzi chairman Nicholas Ng’ang’a assured shareholders that strategic plans had been activated to accelerate and enhance returns by diversifying.

Listed agribusiness firm Kakuzi Plc shareholders have approved Sh22 per share dividend this year.

The dividend is an improvement from Sh18, which was issued a year earlier. The firm is also eyeing diversification into new crops such as macadamia and blueberries as well as rearing goats for meat and a range of retail products for the domestic market to complement earnings from avocado.

Kakuzi chairman Nicholas Ng’ang’a assured shareholders that strategic plans had been activated to accelerate and enhance returns by diversifying the variety of produce delivered to the domestic and global markets.

“We are part of a global marketplace and the products we produce often face stiff competition from producers in other countries. We, therefore, embarked on a very significant diversification programme several years ago to ensure that Kakuzi is not dependent on any one crop,” said Mr Ng’ang’a.

“The results of this revenue diversification strategy have played out in the 2021 financial year as we experienced a difficult market for avocados but a greater contribution to the company’s profitability from the macadamia revenue stream.”

He said the increase in dividend payments from Sh352 million to Sh431 million reflects the company’s strong financial position while accounting for future investments in key long-term strategic developments.

Mr Ng’ang’a said a diverse variety of agricultural produce would further insulate Kakuzi’s dependence on traditional produce such as avocado and tea.

In the last financial year, potentially poor shareholder returns, he said had been mitigated by the positive income realised from some of the firm’s diversification strategy crops.

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