DIVIDEND
Kakuzi continues to have a strong cashflow and balance sheet with profits above those of last year. The Company Directors have recommended a dividend of Ksh 6.00 per stock unit compared to Ksh 5.00 for 2015.

Good but conservative management. The effects of the drought will be felt in 1Q and perhaps 2Q 2017. Commendable performance for 2016.

Managed to spin Kakuzi from a majorly Tea company to an Avocado and Macadamia Company

Kakuzi continues to focus on producing a quality product and has extended its orchard footprint by another 58 hectares (in FY16), totalling 483 hectares. The intention is to have a total planted area of 640 hectares by 2020

The construction of a state-of-the-art macadamia cracking facility was completed within budget and in time to process our own harvest for the year (476 tonnes of Nut In Shell).

The macadamia crop volume increased as per expectation and rose to 91% above 2015 levels.
Kakuzi currently has 953 hectares of macadamia orchard, up by 97 hectares on last year. The objective is to have established a total 1,030 hectares by 2020.

Livestock sales proved challenging as a result of an over-supplied market - 33% down on the previous year. The objective for 2017 is to enhance sales through the building of our own butchery thereby providing a value-added service to our customers.

The forestry programme at Kakuzi continues well with focus on clearing and replanting new forestry plots.
Demand for our products has been satisfactory although, following a review of the price points on transmission poles, a new sales strategy is to be adopted to reignite the sales of this valuable product. The strategy to promote wood products and sales through the construction of a roadside yard to capture the passing trade continues to grow and now represents 33% of total sales. Kakuzi has a total of 1,129 hectares planted to commercial forestry.

Kakuzi’s recently adopted Arable Joint Project sets out to make full potential of black cotton soil areas. The first commercial scale production of various trial crops was achieved during the year with some very positive results with maize and sorghum.

A joint project agreement to produce broilers on Kakuzi has been concluded and the development of this scheme will commence in the second quarter of 2017.