Kakuzi Pays KSh 31.4 Million Bonus to its Avocado Farmers
Kakuzi Plc has begun paying its affiliated avocado farmers a bonus amounting to KSh 31.4 Million, giving them an early Christmas gift.
“Ahead of the Christmas festivities, Kakuzi confirms that we have commenced bonus payments to our avocado smallholder farmers. The total payment to smallholders and out-growers this season is KSh 31.4 Million, and this represents 87% of net returns,” said Kakuzi Plc MD Chris Flowers.
The agribusiness firm has a 3,500 strong smallholder programme where farmers are encouraged to plant the Hass avocado variety due to its popularity and ability to attract reasonable prices on the international market.
It also has 10 active smallholder groups and 7 active outgrowers and provides extension and marketing services to all Hass Avocado farmers.
The Kakuzi smallholder programme is a deliberate community initiative geared at investing in the sustainable supply of quality fruit directly from the source. This is to enable Kakuzi to ensure that the full value gets back to the farmer and traceability can be managed.
Chris Flowers said the programme gives smallholder farmers access to global markets and allows them to benefit from the risks and rewards of the international markets.
Alongside market access, the programme, which provides small-scale avocado growers with access to best practices and the international market for their fruits, has continued to attract farmers from Kakuzi’s local community in Murang’a County and Kirinyaga, Nyeri, Meru and Nandi Counties.
Flowers said that Kakuzi has a large international market and wants smallholder farmers to access it.
“Therefore, we have upscaled the operations of our smallholder avocado farmers programme while boosting the global positioning of Kenyan avocados. The programme provides small-scale avocado growers with access to best practices and the international market for their fruit,” said Flowers.
The firm recently disclosed that it had invested more than KSh 1.6 billion over the last four years to enhance its operations, expand production and maintain global standards.
On an average day, Kakuzi employs 3,000 people, with more than 5,000 school children attending public school learning facilities within its boundaries.
Local suppliers have been servicing procurement opportunities valued at more than KSh 484 Million annually.
Over the last 4 years, Kakuzi has paid out over KSh 900 Million in dividends to its 1,300 shareholders and KSh 260 Million to smallholder avocado farmers, excluding this year’s payment.