Listed agribusiness firm Kakuzi Plc has added loose-leaf tea packets to its domestic product line as part of efforts to reduce exposure to export-related risks.
The tea, branded as Kakuzi Pure Black Tea, is included in the company’s product-and-market diversification strategy aimed at boosting earnings. The brand will be available in 250g and 500g packs.
Kakuzi Managing Director Chris Flowers said the ongoing diversification strategy prioritizes the development of quality consumer products for local consumption.
He noted that the firm is experiencing steady growth as domestic sales begin contributing positively to the balance sheet, complementing its flagship avocado and macadamia exports.
“The Kakuzi business growth and diversification plan is firmly anchored in contributing to the development and promotion of locally produced, quality, value-added products. All our products are benchmarked against export-grade standards,” Mr. Flowers said.
“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,” he added. “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.”
The firm faced a challenging financial year ending December 2024, reporting a loss of Sh130.4 million, down from a profit of Sh455.6 million in the previous period.
The decline was linked to the strengthening of the Kenyan shilling against the US dollar, which impacted profit margins. In the prior year, the shilling had traded at a high of Sh160 to the USD, which contributed to strong profits.
Shipping challenges in 2024, including the closure of the Red Sea passage, also affected earnings as some products, such as avocados, arrived at overseas markets with compromised quality.
In addition to Kakuzi Pure Black Tea, the firm has in recent years launched ready-to-eat macadamia nuts, cold-pressed macadamia oil, and blueberries for the local market, reinforcing its commitment to high-quality, value-added domestic products.
