Live trading at NSEKenyan avocado farmers could gain a new route into the capital markets if Karakuta Fresh Produce secures approval to list on the Nairobi Securities Exchange (NSE).
The fresh produce exporter plans to list by introduction, a move it says will give investors, including smallholder farmers, an opportunity to participate in the wider agricultural value chain.
The proposed listing is subject to approval by the NSE and the Capital Markets Authority (CMA).
Karakuta sources Hass and Fuerte avocados from more than 3,000 farmers across Kenya, Uganda and Tanzania, giving the planned listing a direct link to thousands of small-scale growers who typically remain outside the formal capital markets.
Founder and chief executive Grace Ngungi said the listing would give the company access to deeper capital markets as it expands production and enters new export markets.
“Karakuta has spent eight years building what most companies in this sector only aspire to,” Ms Ngungi said, pointing to the company's packhouse, export channels and market access.
She said the proposed listing would provide investors with an opportunity to participate in a vertically integrated agribusiness with infrastructure and export markets already in place.
For farmers, the move could provide greater visibility of the value created beyond the farm gate.
One of the farmers supplying Karakuta, Njoki Karanja, said the company had provided a reliable market for her produce while supporting growers with technical assistance on pruning, spacing and pest management.
“Before Karakuta, we never knew who would buy our fruit or at what price each season,” Ms Karanja said.
Karakuta was established in 2018 in Juja, Kiambu County, and has built a sourcing network spanning the three East African countries.
The company operates a Nairobi packhouse with capacity to handle 250 containers and a high-precision avocado grading and packing line. It is among 52 operational packhouses in Kenya, according to the company.
Beyond avocados, Karakuta exports fresh herbs including basil, oregano, thyme, tarragon, mint, rosemary, sage, coriander, lovage and chives.
The exporter currently supplies customers in the European Union, United Arab Emirates, Malaysia and India, while targeting China as its next growth market.
The company says the NSE listing will also strengthen corporate governance, improve transparency and provide a platform for future capital raising as its funding requirements grow.
Synesis Capital director of advisory services Makopa Mwasaria said the listing would enhance Karakuta's visibility while providing shareholders with a platform for price discovery and trading.
Since its establishment, Karakuta says it has created 1,163 jobs across its sourcing network, packhouse and export operations.
The company has appointed Synesis Capital as lead transaction adviser, MWC Legal as legal adviser and Baker Tilly as reporting accountants.
The release does not disclose Karakuta's proposed valuation, shareholding structure, financial performance or the amount of capital it may seek to raise following the listing.
