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Kakuzi Limited

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Kakuzi PLC
Company typePublic
KN: KUKZ
IndustryAgricultural
Headquarters
Nairobi
,
Kenya
Key people
Nicholas Ng'ang'a, Chairman
J. L.G. Maonga, Secretary
C. Flowers, Managing Director
ProductsTea, Livestock, Avocados, Forestry Products, Blueberries
ParentCamellia PLC
Websitewww.kakuzi.co.ke

Kakuzi PLC is a listed Kenyan superfood producer trading on the Nairobi and London Stock Exchange, engaging in the cultivation, processing and marketing of avocados, blueberries, macadamia, tea, livestock and commercial forestry. Kakuzi continuously strives to build a sustainable agricultural portfolio that can mitigate weather risks to which the sector has historically been subjected. The company’s development plans are in full swing, with significant additional areas of avocado and macadamia being planted, and trials for blueberry development in progress.

History

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The sisal venture

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The history of Kakuzi dates back to the colonial period with the arrival of Mr. Donald Farquharson Seth-Smith[1] in British East Africa in 1906. A graduate of Oxford, he was a distinguished athlete, and upon arrival in Kenya, he set up his agricultural venture. In 1907, Donald, together with Mr. Mervyn Ridley and Lord Cranworth they bought land (10117 ha) in Makuyu where they established their agribusiness venture.[2] The farm was run by Mervyn and Donald who experimented with different crops before settling on sisal. They named the estate Sisal Ltd[3] and with increased demand for sisal, the business flourished.

The coffee and tea venture

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Kakuzi Fiberlands limited was incorporated in 1919, with interests in sisal and Coffee. It neighboured Sisal Limited and during this time, Sisal limited diversified its portfolio to include tea which was grown in Nandi Hills. This prompted Kakuzi, then majority-owned by Eastern Produce to acquire Siret Tea Estate in 1948.

Merger

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The two firms merged in 1966 to form Kakuzi Plc. In 1987 sisal production ceased owing to increased competition from synthetic fibers. The focus was therefore shifted towards other crops. Following a significant drought in 1984, the coffee plantations started to show symptoms of a serious fungal disease, Fusarium, which had been imported from poorly run neighbouring estates. New planting was not an option as this became infected as well and diversification into other crops resulted. Avocados were particularly viable and planted in large areas. Another diversification, on land unsuitable for more valuable crops, is forestry. Planting started in 1992, and by the end of 2010, some 1242 Hectares had been planted. Cattle were a further diversification during the 1980s, when the size of the herd peaked at 7,500. As of August 2011, the herd was 4,407.

Acquisition by Camellia

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As early as 1948, interests in Kenya's agricultural industry had gained shape. Eastern Produce acquired tea estates in Nandi (Siret Tea Estate). Camellia acquired majority interests in Eastern Produce limited which had interests in Kenya and Malawi. By 1990, Camellia had majority interests in Kakuzi through its subsidiaries; Eastern Produce Plc (34.19%) and Lawrie Group Plc (7.53%). In 1991, Linton Park Plc acquired Eastern Produce and further increased their holdings to 42.83%. By 1994 Linton Park, a subsidiary of Camellia held 50.1% of the outstanding shares.[4] Currently[when?] the stake is held by two subsidiaries; Bordue Ltd (26.06%) and Lintak Investments Ltd. (24.64%). Notably, the largest individual shareholder is John Kibunga Kimani with a 32.20% stake. He is also a Non-Executive Director effective November 1, 2020.

Controversies and accusations of human rights violations

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In 2017, a group of Kenyans petitioned Kenya's National Land Commission, claiming that colonialists had forced them off land Kakuzi then claimed to own, confiscated their animals and left them destitute.[5] More local community groups later joined the petition in laying claim to the company's land.[6]

In February 2019, avocado farmers in Murang'a county threatened to take court action against Kakuzi, accusing the company of breaching an avocado supply contract and not paying them in full.[7]

In October 2020, the law firm Leigh Day said it had initiated legal action against UK firm Camellia, the parent of Kakuzi, on behalf of 79 Kenyans who accused Kakuzi's security guards of perpetrating abuses since 2009 including killings, rape, attacks and false imprisonment.[8][9][10][11][12] Following these allegations, UK supermarket chain Tesco suspended avocado supply from Kakuzi Kenya due to the abuse claims.[13] Two more large European supermarket chains, Sainsbury's and Lidl, later suspended deals with Kakuzi.[14][15] In February 2021, Camellia settled the court case for £4.6 million (Kes 696 million).[16] The sum included compensation, legal costs and funding schemes for the community. However, the company did not issue an apology.[17]

In June 2021, two additional women came forward with new allegations that they had been raped by security guards at Kakuzi farm.[18] On August 3, Kenya's Capital Market Authority questioned the CEO and CFO of Kakuzi about allegations of tax evasion through transfer pricing and conflict of interest by its majority shareholder.[19]

Kakuzi Human Rights

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  1. Following the levelling of unsubstantiated allegations[neutrality is disputed], Kakuzi Plc has been actively working to address stakeholder concerns earlier raised, including with the assistance of leading human rights advisers. The company has already received positive feedback from the Ethical Trade Initiative.
  2. Among other progressive milestones, Kakuzi Plc has enacted an Operational-level Grievance Mechanism, benchmarked against the UN Guiding Principles on Business and Human Rights.This will provide multiple avenues through which employees and the community can raise issues they would like the company to address.
  3. Faced by the unsubstantiated allegations, Kakuzi Plc has been trying to secure evidence on the alleged atrocities raised by the Kenya Human Rights Commission. The company had filed a petition at the High Court on the same but recently filed a withdrawal [12] of the case at the high court in favour of an independent mediation process. By going to the High Court, the company's position was to establish credible evidence to place the alleged perpetrators behind bars. To achieve this, Kakuzi PLC wanted the details of the alleged criminal atrocities alluded to by KHRC to be provided to the police and courts so that any perpetrators can be investigated and convictions secured. This is the right thing to do for the benefit and protection of the community.
  4. In August 2021, Kakuzi PLC became the first corporate organization in Sub Sahara Africa to constitute and establish an Independent Human Rights Advisory Committee (IHRAC) to be chaired by Kenya’s former Attorney General Prof Githu Muigai. The independent advisory panel is benchmarked against the United Nations Guiding Principles on Business and Human Rights. In appointing the IHRAC, Kakuzi joins a growing list of globally focused institutions’ progressively adopting the UN Guiding Principles on Business and Human Rights, such as football governing body FIFA, Global Chemicals manufacturer BASF SE, Adidas, among others.

References

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  1. ^ "SETH-SMITH, Donald Farquharson MC". Europeans In East Africa. Retrieved 18 February 2021.
  2. ^ "Kakuzi Ltd Makuyu Kenya". Faradatainforms. Retrieved 18 February 2021. [permanent dead link‍]
  3. ^ Donald's War: The Diary of a Settler in the East Africa Campaign. Old Africa Books. 2018-10-23. p. 230. ISBN 9789966757494. Retrieved 18 February 2021.
  4. ^ The Capital Markets Authority of Kenya, The Capital Markets Authority of Kenya. "Kakuzi". CMA Resource Centre Portal. Kakuzi.
  5. ^ "Kakuzi fights off locals' claim on its prime land". Nation. 2020-06-28. Retrieved 2022-07-22.
  6. ^ October 29, 2018, Monday (2020-12-10). "Six new groups lay claim on Kakuzi land". Business Daily. Retrieved 2022-07-22.{{cite web}}: CS1 maint: numeric names: authors list (link)
  7. ^ "Farmers threaten to sue Kakuzi over avocados supply deal". Nation. 2020-06-28. Retrieved 2022-07-22.
  8. ^ de Leeuw, Lydia (3 December 2020). "The people vs Kakuzi". SOMO.
  9. ^ "UK's Tesco Supermarket Chain Suspends Avocados From Kakuzi Over Rights Concern". Capital News. AGENCE FRANCE PRESSE. 2020-10-12.
  10. ^ Juma, Victor (2020-05-18). "Kakuzi parent company faces claims in UK for Africa abuses". Business Daily.
  11. ^ Muthoni, Kamau (2020-10-12). "Kakuzi parent company sued for abuses and deaths". The Standard.
  12. ^ Kasuku, Andrew (16 October 2020). "BLOODY AVOCADOS OF MAKUYU: Victims of Kakuzi rights abuses speak of assault, rape". The Star.
  13. ^ "UK's Tesco suspends avocado supply from Kakuzi Kenya over abuse claims". The East African. 2020-10-12. Retrieved 2022-07-22.
  14. ^ Muthoni, Kamau (18 October 2020). "Another UK outlet suspends selling avocados from Kakuzi". The Standard.
  15. ^ October 20, 2020, Tuesday (2020-10-19). "Pressure on Kakuzi as more European firms cut orders". Business Daily. Retrieved 2022-07-22.{{cite web}}: CS1 maint: numeric names: authors list (link)
  16. ^ February 13, 2021, Saturday (2021-02-15). "Sh696m payout for Kakuzi rights violation victims". Business Daily. Retrieved 2022-07-22.{{cite web}}: CS1 maint: numeric names: authors list (link)
  17. ^ de Leeuw, Lydia (13 February 2021). "SOMO welcomes settlement between British agribusiness giant and Kenyan claimants". SOMO.
  18. ^ Nunis, Vivienne (13 December 2021). ""I was assaulted by Kenyan avocado farm guard"". BBC News.
  19. ^ August 03 2022, Wednesday (2022-08-02). "CMA grills Kakuzi boss, CFO over Britain money transfers". Business Daily. Retrieved 2022-08-03.{{cite web}}: CS1 maint: numeric names: authors list (link)
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