Kakuzi to Set Up Macadamia Oil Extraction Plant

To fulfill the rising demand for value-added goods within its superfood line, agricultural company Kakuzi is getting set to commission a macadamia oil extraction plant.

Kakuzi Chairman Nick Ng’ang’a said during the company’s 95th Annual General Meeting that local sales of value-added macadamia products will assist minimize difficulties in the international arena because of a persistent macadamia excess in the market.

He added that the superfood grower is actively focusing on enhanced revenue generation from diversified local and export markets.

“We believe that the diversity of products, markets and routes to market are essential elements of Kakuzi’s business strategy,” Ng’ang’a said.

“Having the combination of avocados, macadamias and hopefully blueberry as export crops to America, Japan, Europe, China, the Middle East and the UK, as well as a strong domestic value addition range,” he added.

“We believe it will give us the greatest opportunities to minimize risk and maximize returns in these difficult international market conditions.”

Kakuzi’s managing director, Chris Flowers, stated that the company is examining and fine-tuning the final investment choice for the firm’s blueberry endeavor.

He continued to state that Kakuzi has the capacity to grow blueberry crops on up to 200 hectares, which would increase the company’s annual revenue by Sh5 billion.

“This is an exciting opportunity that the Board is appraising keenly as it is a major undertaking with an estimated investment cost of around sh4 Billion,’ Flowers said.

“In addition, the Kakuzi Farmers Market will also provide a retail opportunity for a section of the local smallholder farmers as we plan to provide an opportunity for them also to sell their produce and wares to the captive market on this new road that traverses through Muranga, Kirinyaga and Nyeri counties.”

Kakuzi has increased the area used for avocado production by 24 percent over the past five years, from 798 ha to 987 ha.

The company has also increased the capacity of its avocado packinghouse from 8 tons per hour to 16 tons per hour and nearly doubled its macadamia plantations from 621 ha to 1,128 ha by expanding its cold chain solutions.

Kakuzi has made additional investments in increased irrigation capacity as part of its commitments to climate-smart agriculture, including the building of 19 different earth dams holding 12 million cubic meters of water with the ability to irrigate 1,600 ha of macadamia, avocado, and blueberry crops.

Kakuzi posted a net profit of Sh845.8 million for the fiscal year that ended on December 31, 2022, a 62 percent increase from the prior year.