Troubled Kakuzi Public Limited Company has been dealt with a major blow after market boycotts its products against the backdrop of its dwindling profit performance.
The Kenya Human Rights Commission (KHRC) and Ndula Resource Centre warned that there would be no reprieve until the agricultural multinational implements the 2019 National Land Commission recommendations to among other things open access roads, resettle communities they displaced and hand over utilities within their land including schools, markets, police stations and hospitals to national and county governments.
In a joint press briefing, the human rights defenders vowed to initiate rigorous engagements with other Kakuzi markets to boycott any produce coming from the firm.
“Kakuzi lost some of its biggest UK markets in the wake of media reports on its nefarious behaviour towards its host community and workers,” they said.
“Until there is demonstratable change in attitude and practice on the part of Kakuzi that’s when the boycott will end.”
The leading agro-processing firm had issued a 25 per cent cautionary loss in net profit for the year ended 31 December 2021 to investors and the general public.
According to Nicholas Ng’ang’a, Kakuzi Plc Board Chairman, the profit warning arises from trading information, market forecasts and the preliminary unaudited full-year financial results among other data sources.
The company has attributed the poor performance to a drop in avocado production and lower global market prices in European markets.
“The anticipated drop in full year earnings is as a result as a result of 18 per cent drop in production of Hass Avocado,” stated the company.
“There were also lower global market prices in Hass avocado in its European markets due to an oversully of the fruit from Peru and Columbia, which impacted prices during the same period that the Kakuzi product was also in the market,” added the company.