Listed agribusiness firm Kakuzi has added loose-leaf tea packets to its list of domestic product line to mitigate export-associated risks.<\/p>\n
The tea, branded as Kakuzi Pure Black Tea, is part of the firm’s efforts in product-and-markets diversification strategy to boost its earnings. The brand will be available in 250 g and 500 g packs.<\/p>\n
Kakuzi Plc Managing Director Chris Flowers said the ongoing diversification strategy prioritises the development of quality consumer products for local consumption.<\/p>\n
He said the firm is enjoying steady growth as domestic sales of products begins to contribute positively to the balance sheet, complementing the firm’s flagship Avocado and Macadamia exports.<\/p>\n
The Kakuzi business growth and diversification plan, he said, is firmly anchored in positively contributing to the development and promotion of locally produced, quality, value-added products. All the products, he assured, are benchmarked against export-grade standards.<\/p>\n
“This is the first time in our history that we are delivering a quality tea brand for the local market, sourced from our Kaboswa Tea Estate in Nandi County,” Mr Flowers said. “By packaging the locally processed and blended tea leaves for local sale, Kakuzi is working to mitigate export-only risks for its tea produce as international tea trade fortunes dwindle”.<\/p>\n
In the year ended December 2024, the firm reported a loss of Sh130.4 million down from a profit of Sh455.6 million in the previous period, which was associated with strengthening of the Kenyan shilling against the US dollar.<\/p>\n
The previous year, the shilling exchanged for a high of Sh160 to the USD which contributed to the high profit margins.<\/p>\n
Challenges in shipping routes in 2024 due to the closure of the Red Sea passage also affected the firm’s earnings as some of its products such as avocadoes were of compromised quality when they arrived in their destined markets.<\/p>\n
Alongside Kakuzi Pure Black Tea, Kakuzi has, in recent years, launched quality ready-to-eat macadamia, cold pressed macadamia oil, and blueberry products to the local market.<\/p>\n
<\/p>\n
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