Kakuzi Plc has reported a sharp drop in half year earnings, with net profit falling 97.6 percent as dry farm conditions, disrupted shipping routes and a weaker macadamia market weighed on the agribusiness through the first six months of 2026.
The Nairobi Securities Exchange listed firm published the unaudited results for the six months to 30 June 2026 alongside a profit warning that flags a further decline in full year earnings.
H1 2026 results at a glance
| Metric | H1 2026 | H1 2025 | Change |
|---|---|---|---|
| Sales | KES 1.12B | KES 1.51B | Down 26.0% |
| Profit before tax | KES 10.4M | KES 435.2M | Down 97.6% |
| Net profit | KES 7.1M | KES 295.5M | Down 97.6% |
| Net margin | 0.6% | 19.5% | Down |
| Earnings per share | KES 0.36 | KES 15.08 | Down |
| Cash and cash equivalents | KES 274.6M | KES 890.3M | Down 69.2% |
| Operating cash flow | KES (739.7M) | KES 11.9M | Swung negative |
| Net current assets | KES 2.37B | KES 2.72B | Down 13.0% |
| Interim dividend | None | None | No change |
Avocado and macadamia lead the decline
Kakuzi’s two core crops drove the drop. Avocado operating profit fell 45.3 percent to KES 215.9 million from KES 394.9 million in H1 2025, as the global avocado market stayed well supplied and prices came under pressure through the second half of the period. The company also pointed to a lower anticipated crop from its own orchards and disrupted shipping routes into Europe.
Macadamia moved from profit to loss. The segment posted a KES 68.2 million operating loss, reversing a KES 318.8 million profit in H1 2025, as rising global supply and weaker demand pushed prices down.
Not every segment declined. Blueberry operating profit rose to KES 15.1 million from KES 13.4 million, continuing its run of profitable growth despite freight disruption tied to the conflict in the Middle East. Forestry operating profit climbed to KES 73.3 million from KES 42.9 million on continued demand for poles. Tea and livestock performed in line with expectations.
Cash position tightens
Cash and bank balances fell 69.2 percent to KES 274.6 million at the end of June, down from KES 890.3 million a year earlier. Operating activities used KES 739.7 million in cash during the half, a reversal from the KES 11.9 million generated in H1 2025. Kakuzi also spent KES 258.9 million in investing activities and KES 313.7 million in financing activities, including a KES 313.6 million dividend payment. The board did not recommend an interim dividend for H1 2026.
The profit warning
Kakuzi issued the results alongside a profit warning under Paragraph 14.5.7 of the Capital Markets (Public Offers, Listing and Disclosures) Regulations, 2023.
Chairman Nicholas Ng’ang’a said the company expects full year net earnings for FY2026 to come in at least 25 percent below the KES 387.5 million reported for FY2025, citing exceptionally dry farm conditions at the end of 2025, the Middle East conflict and a softer international macadamia market.
Ng’ang’a said the company’s strategic priorities remain unchanged even as operating conditions shift, with Kakuzi continuing to grow avocado and macadamia output as existing orchards mature, while diversifying into new superfoods and geographic markets.
A reversal from a strong FY2025
The scale of the drop stands out against Kakuzi’s recent run. The company swung from a KES 131.6 million loss in 2024 to a KES 387.5 million profit after tax in FY2025, with revenue climbing 12 percent to KES 5.37 billion and shareholders receiving a dividend of KES 16 per share, double the 2024 payout.
H1 2025 alone delivered KES 295.5 million in net profit on KES 1.51 billion in sales, extending gains from the half year results Khusoko covered in August 2024, when profit nearly tripled on strong avocado and macadamia exports.
That momentum had supported Kakuzi’s diversification and expansion plans, which the board says remain intact despite the setback.
Ng’ang’a said a long term view, diversification and disciplined execution remain what allow Kakuzi to withstand short term shocks from markets, weather or geopolitics while continuing to build shareholder and stakeholder value.
