Kakuzi Limited

Kakuzi PLC is a Kenyan agricultural cultivation and manufacture company.^[1] Its products include avocados (of which it has been Kenya's largest exporter), blueberries, macadamia, tea, livestock and commercial forestry.^{[2][3] [4]} Its subsidiaries include Estates Services Limited. Kakuzi's majority shareholder is the British company Camellia.^[5]

History[]

The Sisal Venture[]

The history of Kakuzi dates back to the colonial period with the arrival of Mr. Donald Farquharson Seth-Smith^[6] 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.^[7] The farm was run by Mervyn and Donald who experimented with different crops before settling on sisal. They named the estate Sisal Ltd ^[8] and with increased demand for sisal, the business flourished.

The Coffee & Tea Venture[]

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[]

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[]

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.^[9] Currently, the stake is held by two subsidiaries; Bordue Ltd (26.06%) and Lintak Investments Ltd. (24.64%). Notably, the largest individual shareholder is Mr. John Kibunga Kimani with a 32.20% stake. He is also a Non-Executive Director effective November 1st 2020.

Kakuzi Human Rights Measures[]

1. Following the levelling of unsubstantiated allegations, 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. ^[10]
3. 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. ^[11]
5. 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.
7. 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. ^[13]

References[]