Kakuzi share price surges, investors reap double dividend as profits soar by 200%

THE wealth of the shareholders of Kakuzi Plc grew by an additional Sh2.50 per share on Friday after the firm posted a near 200 per cent growth in net earnings for 2025.

This pushed total gains since January to Sh29, with the share price closing the week at Sh427.

Avocado and macadamia operations delivered a combined Sh1.07 billion in segment profit, powered by strengthening demand for healthy snacks and premium ingredients, with substantial consumption growth, particularly in China.

A net profit of Sh388 million, up from Sh132 million in 2024, led the board of the agribusiness and superfoods grower to recommend a first and final dividend of Sh16 per share, double the amount declared in 2024.

Analysts expect the firm’s share price, which has since gained 6.8 per cent on that price valuation, to hold steady in the short term but are concerned that ongoing geopolitical tensions will negatively impact the firm’s flagship avocado operations.

Even so, Kakuzi managing director, Chris Flowers, has assured investors that the firm is actively rolling out a products-and-market diversification strategy, among other efforts to accelerate growth.

During the week, the Nairobi Securities Exchange also posted a 134 per cent increase in net profit for the financial year ended December 31, 2025, driven by a surge in trading activity and improved market conditions.

The Nairobi bourse’s profit rose to Sh272.2 million, up from Sh16.3 million in 2024.

Total revenue crossed the Sh1 billion mark for the first time, growing 31 per cent year-on-year, supported by strong performance across both the equities and fixed income markets.

Bond market activity was a key driver of this growth, fuelled by increased government borrowing and strong investor demand for high-yield securities.

The exchange plans to extend trading beyond regular 9 am to 3 PM in a bid to attract investors, particularly retail participants, to engage with the market more flexibly.

The bourse reported low trading activity during the week, despite impressive annual performance.

All indices recorded significant declines in the week ended March 26, with the NASI, NSE 25, and NSE 20 share price indices decreasing by 6.21 per cent, 7.85 per cent, and 5.86 per cent, respectively.

Market capitalization also decreased by 6.91 per cent, while total shares traded and equity turnover increased by 17.92 per cent and 35.13 per cent, respectively.

Bond turnover in the domestic secondary market also decreased by 35.34 per cent, to Sh51.8 billion, from Sh89.9 billion the previous week.

In the money market, the Treasury bill auction of March 26 received bids totalling Sh10.9 billion against an advertised amount of Sh24 billion, representing a performance of 45.5 per cent, the lowest level reported in 18 months.

This is attributed to declining rates for both the 91-day, 182-day, and 364-day Treasury bills.

Concerns about global inflation remained elevated during the week due to supply chain disruptions attributed to the war in Iran.

International oil prices remained elevated amid disruptions following the closure of the Strait of Hormuz. Murban crude oil price rose to $97.99 per barrel on March 26, from $95.91 per barrel on March 18.