Kakuzi Warns of Lower 2026 Earnings Amid Market and Weather Challenges
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Kakuzi Plc has warned its investors that its net earnings for the year ending December 2026 could be at least 25 percent lower than the previous year’s results.
In a notice dated August 26, the company cited adverse weather conditions, geopolitical tensions and a weaker international macadamia market as contributing to the lower yields.
The result is based on trading information, market forecasts and the company’s unaudited financial results for the six months ended June 30, 2026.
“We, therefore, wish to report that our net earnings for the period ended 31st December 2026 may be at least 25% lower than that reported for the year ended 31st December 2025,” read part of the notice.
Dry Weather, Macadamia Market Weigh on Outlook as Profit is Expected to Drop
Kakuzi said exceptionally dry conditions on its farms towards the end of 2025 are expected to negatively affect its financial performance.
The company also cited the ongoing conflict in the Middle East and a softening international macadamia market as additional factors likely to put pressure on its 2026 results.
According to Kakuzi, the combination of weather-related challenges and weaker market conditions comes as the agricultural company continues to navigate changing conditions in its key export markets.
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In addition, the company cautioned that the estimate is based on information currently available to its board and remains subject to the performance of the business during the remainder of the financial year.
“This profit warning notice arises from trading information, market forecasts and the unaudited results to 30th June 2026 (which have been approved, issued and published today), among other data sources currently at the Board’s disposal,” Kakuzi stated.
Kakuzi Maintains Long-Term Growth Strategy
Despite the challenging outlook, Kakuzi said it remains committed to its strategic priorities.
The company plans to increase avocado and macadamia production, particularly as its existing orchards mature.
It also plans to diversify into other superfoods and expand into new geographical markets.
Kakuzi said it remains focused on taking a long-term approach to its business while maintaining diversification and disciplined execution.
The company added that these measures will help it withstand short-term disruptions caused by market conditions, weather and geopolitical developments while continuing to create sustainable value for shareholders and other stakeholders.
Profits Jump to Ksh709 Million as Shareholders Approve Ksh16 Double Dividend
The warning comes months after Kakuzi posted a turnaround in its 2025 financial performance and doubled its dividend payout to shareholders, supported largely by stronger returns from its avocado business.
Also Read: Kakuzi Plc Raises Dividend to Ksh 16 as Avocado and Macadamia Profits Surge in FY2025
The company reported a turnaround from a Ksh131.6 million after-tax loss in 2024 to a Ksh387.5 million after-tax profit in 2025.
It also declared a first and final dividend of Ksh16 per ordinary share for the 2025 financial year, double the Ksh8 payout made the previous year.
The recovery was supported by its avocado business, with the segment’s profits nearly doubling to Ksh709 million in 2025 from Ksh361 million in 2024.
The company generated revenues of Ksh5.4 billion and posted a pre-tax profit of Ksh568 million, compared with a pre-tax loss of Ksh167 million in the previous year.
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Kakuzi plc Managing Director Chris Flowers, with Chairman Nick Nganga accompanying Ministry of Investments, Trade and Industry CS Lee Kinyanjui. PHOTO/CS Lee Kinyanjui (X)