British owned agricultural firm, Kakuzi PLC which has in the past recorded shocking labour rights abuses claims has dominated the Avocado value chain category by clinching five nominations at this year’s Avocado Industry Excellence Awards, hosted by the Avocado Society of Kenya (ASK).
The awards recognise outstanding individuals and organisations that continue to make significant contributions to the avocado industry.
The ceremony is slated for December 5, 2024 at the Argyle Grand Hotel in Nairobi.
In the just-released nominations for the Kenya Avocado Industry Excellence Awards 2024, Kakuzi PLC Managing Director Chris Flowers has been shortlisted for Individual Recognition for Avocado Person of the Year 2024.
Kakuzi’s nomination for the five awards comes against the backdrop of a litany of human rights abuses by the firm by employees and host communities.
For example, in 2021, a total of 253 grievances from local communities on human rights constituted more than two-thirds of the complaints.
According to the company’s Environmental, Social and Governance (ESG) 2021 report, out of the 253 grievances, the company handled last year, 169 were related to human rights, 38 to work related injuries and 15 to safety and health.
The continued high levels of human rights concerns highlight the existing threat for the company which is recovering from dire reputational damage since 2020 when revelations of serious cases of human rights abuses by some of its guards at the Murang’a based farms against neighbouring communities were made.
In the ESG report released in the past, Kakuzi stated that under its operational and grievance mechanism (OGM) established last year to facilitate engagements between the firm and local communities following the 2020 accusations.
“OGM is a systematic, transparent, non-judicial process for receiving, investigating and addressing company related grievances from affected communities, workers, farmers who supply avocados through Kakuzi’s economic empowerment programme and other relevant stakeholders.” The report read in part.
“During the reporting period, Tier 1 received over 400 complaints related to labour, safety and health, work related injuries, sexual harassment, pollution and living and working conditions.” The report added.
In June 2022, Kakuzi was on the radar of the Capital Markets Authority (CMA) Kakuzi is over allegations of shifting profits abroad and corporate governance issues perpetrated by its majority shareholder Camellia Plc and transfer pricing.
The market authority has also stepped-up surveillance of the company for irregular practices that have hurt small shareholders and farmers while benefiting majority owners.
Minority shareholders of the company had previously complained about being locked out of the company board, which was controlled by the British company Camellia Plc.
The multinational controls 50.7 per cent of Kakuzi through its holdings in Bordure Limited and Lintak Investments.
Kakuzi is also facing publishing cooking books challenges due to its majority owners, who have long excluded local shareholders from the company’s board of directors.
Kakuzi is set to get awards for Large-Scale Orchards over 100 acres for its Murang’a orchards, Growers in Nursery and Seedlings for its Nursery in Murang’a, Large-Scale Export with over 200 containers, and Auxiliary Services for its top-notch Packhouse operations.
Speaking on the nominations, Kakuzi Managing Director Chris Flowers welcomed the award s a testament to their dedication to excellence.
“These are a testament to our dedication to excellence, quality, and sustainability. We take pride in contributing to Kenya’s avocado industry and supporting local farmers through training and innovation. Our integrated, traceable value chain demonstrates the highest standards from seedling to plate, showcasing Kenyan avocados on the global stage.” Flowers noted.
The Kenya Avocado Excellence Awards (KAEA), now in its fifth year, acknowledges and promotes accomplishments that drive the growth of the Kenyan avocado sector.
The awards emphasise exceptional service delivery, industry advancement, innovation, creativity, and adherence to high standards, fostering a competitive and collaborative environment within the avocado sector.
In the last five years, Kakuzi is said to have increased its avocado production by 24 per cent, with its orchards now spanning over 987 hectares. In 2023, the company produced over 14,140 tonnes of avocados, serving local and international markets.
Kakuzi’s avocado operations are certified by the Rainforest Alliance and FSSC 22000 standards, which verifies that its farming methods promote responsible supply chains and environmental sustainability.
The company’s Global GAP-certified Packhouse in Makuyu follows strict quality standards, including internal maturity testing to comply with international phytosanitary regulations.
The 2024 Avocado Industry Excellence Awards will honour Kakuzi and other industry leaders at a Networking Gala Dinner.
The event will promote collaboration and healthy competition, fuelling growth and innovation in Kenya’s avocado sector.
Two years ago, Kakuzi was ordered by the Haigh Court in Nairobi bear the costs of a defamation case it had filed against the Kenya Human Rights Commission in March 2021 year.
This is after the High Court ordered Kakuzi to incur the cost by its advocates and those of KHRC.
Justice Anthony Mrima ordered the firm to bear the costs since it is the one that filed the lawsuit declining the company’s request to order each party to bears its costs.
“The termination of the petition was after the KHRC filed responses to the petition. The reason for withdrawal of the petition by Kakuzi was given as to enable investigations by an independent team.” Justice Mrima ruled
Kakuzi had sued KHRC over an article that alleges it has over the years condoned violence, killings, rape and labour injustices.
In the petition that Kakuzi later withdrew at the High Court in Milimani, the firm said the article published on KHRC website after settlement of a case in the United Kingdom where 85 Kenyans were awarded Sh696 million by its parent firm Camelia Plc, could severely affect its business.
Through Kaplan & Straton Advocates law firm, Kakuzi described the article punished on the KHRC website as untrue and misleading.
Kakuzi thus wanted KHRC compelled to pull it down and publish a correction.
Kakuzi said that besides the atrocities said to have been committed since 2003, KHRC also accused it of bad corporate governance and gross historical and land injustices which have displaced more than 13 neighbouring communities within Murang’a and adjacent counties’.
However, Kakuzi thereafter withdrew the petition stating that there was no agreement between the parties on the issue of costs.
