Smallholder Hass avocado farmers affiliated with Kakuzi PLC, a leading agri-business firm listed on the Nairobi Securities Exchange, are set to receive over Ksh 10 million in bonuses from their produce exports for 2024. This announcement marks another milestone in the firm’s commitment to supporting smallholders and out-growers, particularly in Murang’a County and neighboring regions.
Kakuzi PLC Managing Director Chris Flowers confirmed the payout, noting that despite the operational challenges faced this year, the firm’s commitment to its shared value business model ensured the farmers’ rewards. “Despite the considerable challenges in getting good fruit to market this year, we were still able to give our partner growers a decent return on good quality avocados,” said Mr. Flowers.
This year’s payout represents 84% of the smallholders and out-growers’ profits, an impressive figure that will also feature in Kakuzi’s 2024 audited Annual Financial Statements. It underscores the company’s commitment to paying at least 80% of profits from fruit sales to its smallholder partners.
Sustainability at the Core
Support for smallholders is integral to Kakuzi’s ethos and is detailed in its recently launched fourth Environmental, Social, and Governance (ESG) Report. Themed “Fostering Sustainable Development: Balancing Socioeconomic Growth with Environmental Stewardship,” the report aligns with global standards, including the Global Reporting Initiative (GRI) and the United Nations Sustainable Development Goals (SDGs).
The report highlights Kakuzi’s efforts to empower small-scale avocado farmers through market access and training in good agricultural practices. The firm’s smallholder and out-grower programme, based in Murang’a County, has grown to include farmers from Kirinyaga, Nyeri, Meru, Laikipia, and Nandi counties.
Kakuzi’s extension services department plays a pivotal role by offering free fruit maturity testing to ensure harvested avocados meet the minimum dry matter standard of 24%. This service, alongside training on sustainable farming practices, empowers farmers economically while enhancing household incomes and strengthening the national economy.
Market Access and Traceability
Mr. Flowers emphasized the importance of helping farmers navigate changing legislation and sustainability standards in key export markets such as Europe, China, India, and Malaysia. “With changing legislation in Europe, it is imperative that we continue to assist our partner growers in accessing the market by understanding what traceability and sustainability standards are and how to apply them consistently,” he said.
The programme’s focus on the Hass avocado variety, prized internationally for its quality and demand, has enabled farmers to fetch competitive prices in global markets. By offering a sustainable alternative to middlemen, Kakuzi ensures traceability—a critical factor in meeting export requirements.
Previous Payout Success
Kakuzi’s support for farmers is not new. In 2023, the company disbursed Ksh 58.3 million to smallholders and out-growers from a net return of Ksh 71.7 million, representing an 81% payout. This strong history of rewarding farmers reflects Kakuzi’s long-term commitment to fostering a sustainable supply chain.
Empowering Communities
Kakuzi’s Managing Director reiterated the importance of the smallholder programme as a community-focused initiative. It invests directly in a sustainable supply of quality fruit while economically empowering local farmers. “If one goes the broker route, traceability, a crucial ingredient to avocado export, is lost,” he noted.
By combining training, financial support, and market access, Kakuzi has positioned itself as a key player in Kenya’s avocado export industry. The firm’s shared value approach not only benefits farmers but also strengthens its brand as a leader in responsible and sustainable agribusiness.
As the avocado export market continues to expand globally, Kakuzi’s model offers a blueprint for balancing profitability with community development. Farmers, especially those cultivating Hass avocados, are well-positioned to reap the rewards of international demand while contributing to Kenya’s economic growth.
The Ksh 10 million bonus payout for 2024 underscores Kakuzi’s unwavering commitment to its farmers and the sustainability of the avocado value chain. It is a testament to how shared prosperity can drive both business success and community transformation.
