Agribusiness leader Kakuzi Plc is turning to domestic markets with the launch of Kakuzi Pure Black Tea, a strategic move aimed at reducing exposure to the uncertainties of global trade.
Available in 250g and 500g packs, the tea is sourced from Kaboswa Tea Estate in Nandi County and represents the firm’s first direct-to-consumer tea offering.
The initiative forms part of Kakuzi’s business diversification strategy, which seeks to complement its core export portfolio of avocados and macadamia nuts with locally sold, value-added products.
Managing Director Chris Flowers said the move is a calculated response to financial pressures experienced in 2024, when the firm reported a loss of Sh130.4 million, down from a profit of Sh455.6 million the previous year.
“Currency fluctuations and global shipping disruptions affected our export revenues last year. By expanding our domestic offerings, we are building a more resilient revenue base,” Flowers said.
Kakuzi’s decision reflects broader market dynamics. The strengthening of the Kenyan shilling against the US dollar, coupled with logistical challenges such as the Red Sea shipping disruptions, hit margins and exposed the company’s reliance on exports.
Beyond tea, Kakuzi has in recent years rolled out ready-to-eat macadamia nuts, cold-pressed macadamia oil, and blueberries for the local market, signaling a deliberate shift toward domestic revenue streams.
Analysts say this strategy positions Kakuzi to protect profitability while tapping into growing local consumer demand, ensuring the company can continue to thrive even when export conditions are unpredictable.
“Diversifying into local products isn’t just about growth; it’s about risk management and long-term sustainability,” Flowers added.
With Kakuzi Pure Black Tea, the company is sending a clear message to investors: domestic markets are now a core pillar of business strategy, helping shield earnings from global volatility.
