Kakuzi Plc has reported a sharp decline in its financial performance for the first half of 2026, with profit before tax falling 97.6 per cent to KSh10.4 million from KSh435.2 million a year earlier.
Net profit after tax dropped to KSh7.1 million, down from KSh295.5 million in the same period of 2025, while earnings per share declined to KSh0.36 from KSh15.08.
The significant deterioration reflects difficulties affecting the agribusiness sector, including shipping disruptions and softer commodity markets.
Kakuzi's performance is particularly sensitive to conditions in international agricultural markets because of its exposure to export-oriented crops.
Export challenges weigh on performance
The company's avocado and other agricultural operations depend heavily on efficient access to overseas markets.
Shipping disruptions can create additional logistics costs and affect the timing and profitability of exports. Weak commodity prices can compound those pressures by reducing the revenue earned from each shipment.
The sharp fall in profit therefore highlights the vulnerability of agricultural exporters to developments beyond their direct control.
For investors, the results represent a substantial reversal from Kakuzi's previous performance and raise questions about how quickly profitability can recover.
At the same time, the company remains exposed to the longer-term potential of Kenya's horticultural export sector, which continues to generate foreign exchange and employment.
The results are also a reminder that strong agricultural production does not necessarily translate into stronger corporate earnings when exporters face difficult global market conditions.
Kakuzi's subsequent performance will depend on commodity prices, shipping conditions, export volumes and the company's ability to manage costs.
