Listed agribusiness firm Kakuzi Plc has launched loose-leaf tea packets for the local market, aiming to reduce reliance on exports and strengthen its domestic sales.
The new product, Kakuzi Pure Black Tea, is part of the firm’s product-and-market diversification strategy designed to stabilize earnings and offer Kenyans high-quality locally produced tea. The tea will be sold in 250g and 500g packs.
Kakuzi Managing Director Chris Flowers said the strategy emphasizes the development of quality consumer products for local consumption. He highlighted that domestic sales are beginning to contribute positively to the company’s balance sheet, complementing its core avocado and macadamia export operations.
“The Kakuzi business growth and diversification plan is firmly anchored in contributing to the development and promotion of locally produced, quality, value-added products. All our products are benchmarked against export-grade standards,” Mr. Flowers said.
“This is the first time in our history that we are delivering a quality tea brand for the local market, sourced from our Kaboswa Tea Estate in Nandi County,” he added. “By packaging the locally processed and blended tea leaves for local sale, Kakuzi is working to mitigate export-only risks for its tea produce as international tea trade fortunes dwindle.”
The company faced financial pressures in the year ending December 2024, recording a loss of Sh130.4 million, down from a profit of Sh455.6 million the previous year.
The decline was attributed to the strengthening of the Kenyan shilling against the US dollar, which affected profit margins, while the prior year’s favorable exchange rate of Sh160 to the USD had boosted profits.
In addition, global shipping disruptions, including the closure of the Red Sea passage, impacted product quality, particularly for perishable exports such as avocados, affecting overall earnings.
Alongside Kakuzi Pure Black Tea, the firm has also introduced ready-to-eat macadamia nuts, cold-pressed macadamia oil, and blueberries to the local market in recent years, reinforcing its focus on value-added domestic products and mitigating the risks of relying solely on exports.