MURANG’A. Kenya Dec 21 – Listed agribusiness firm, Kakuzi Plc has rolled out Sh. 31 million to hundreds of smallholder avocado farmers in Murang’a County in order to provide capital for increased avocado produce.
The farmers, who are part of the firm’s 3,500 strong smallholder programme, have begun to receive the cash payout in order to continue planting Hass avocados.
According to Kakuzi Managing Director Chris Flowers, the Hass variety was encouraged due to its popularity and ability to attract reasonable prices in the international market.
He noted that the cash payout would act as a motivator for farmers in the area to accelerate production so as to benefit from the risks and rewards found in the international markets.
“Ahead of the Christmas festivities, Kakuzi confirms that we have commenced bonus payments to our avocado smallholder farmers. The total Payment to smallholders and out-growers this season is Sh.31.4 million, and this represents 87 percent of net returns,” Flowers said.
He added that through their smallholder programme, small-scale avocado growers are given access to best practices, are able to get back full value of their produce and traceability is managed.
“Kakuzi has a large international market and wants smallholder farmers to access it. Therefore, we have up scaled the operations of our smallholder avocado farmers’ programme while boosting the global positioning of Kenyan avocados,” he added.
Through its Environmental, Social, and Governance (ESG) report released on Dec 16, the firm revealed that it had invested more than Sh.1.6 billion over the last four years in order to enhance its operations, expand production and maintain global standards.
It further revealed that over the same period, it had paid out over Sh900 million in dividends to its 1,300 shareholders and an additional Sh.260 million to smallholder avocado farmers.
“Consistent with ESG standards, we have put money and human capital resources where our mouth is…At our Murang’a county-based agricultural production fields, the firm is part and parcel of the surrounding community,” he added.
