Kakuzi Plc Packhouse Manager Monica Nyambura explains the quality features of an export-grade avocado fruit to Kenya Defense Forces JCSC Commandant Maj Gen Eric Kinuthia at the Kakuzi Packhouse. [File, Standard]
Kakuzi has reported a massive 97.6 per cent drop in net profit, with the firm citing disruption of key routes to its export markets due to the ongoing US-Iran war as a major reason behind its losses. The producer further cited softening demand for its key exports to Europe and other markets.
The company reported a profit of Sh7.11 million for the six months to June this year, down from Sh295.44 million over a similar period last year.
The firm has further issued a profit warning for the full year period to December 2026, indicating that it does not anticipate an improvement in the conditions for the remaining half. The firm’s board did not recommend the payment of an interim dividend.
“The year-to-date trading in our two core crops has been negatively impacted by geo-political instability impacting key shipping routes into Europe, a lower anticipated overall avocado volume and a downturn in market demand for macadamia,” said the company in a statement yesterday.
Kakuzi noted that there was oversupply in the global avocado market that put pressure on prices as well as the war in the Middle East that disrupted shipping routes. These factors, the firm said, weighed heavily on returns from avocados, whose operating profit for the half year fell to Sh215.9 million from Sh394.9 million over a similar period in 2025.