Kakuzi Expands Domestic Product Line to Offset Export Volatility

Listed agribusiness firm Kakuzi Plc has added loose-leaf tea packets to its local product lineup in a strategic move to reduce reliance on export markets.

The tea, marketed as Kakuzi Pure Black Tea, is part of the company’s product-and-market diversification strategy aimed at boosting earnings and tapping into growing local demand. It will be available in 250g and 500g packs.

Kakuzi Managing Director Chris Flowers said the diversification strategy focuses on delivering high-quality products for local consumers. He noted that domestic sales are starting to make a meaningful contribution to the company’s balance sheet, complementing its avocado and macadamia export business.

“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.”

In the year ending December 2024, the firm posted a loss of Sh130.4 million, down from a profit of Sh455.6 million the previous period. The decline was linked to the strengthening of the Kenyan shilling against the US dollar, which squeezed export margins, while the previous year’s exchange rate of Sh160 to the USD had supported higher profits.

Global shipping challenges, particularly the closure of the Red Sea passage, also affected Kakuzi’s earnings, as some exports such as avocados arrived at overseas markets with compromised quality.

In recent years, Kakuzi has complemented its tea launch with other domestically focused products, including ready-to-eat macadamia nuts, cold-pressed macadamia oil, and blueberries, reinforcing its commitment to high-quality local products while protecting the business from the unpredictability of international trade.