Kakuzi Targets Local Market with New Tea Brand Amid Export Challenges

Agribusiness giant Kakuzi Plc is turning its attention to Kenyan consumers with the launch of Kakuzi Pure Black Tea, a new loose-leaf tea brand aimed at strengthening its domestic footprint and cushioning the company against global market uncertainties. Available in 250g and 500g packs, the tea is sourced from Kaboswa Tea Estate in Nandi County and represents the company’s first-ever foray into selling tea directly to local households. Chris Flowers, Kakuzi’s Managing Director, said the initiative is part of a broader product and market diversification strategy designed to reduce dependency on exports. “We are committed to delivering high-quality, locally produced products that meet the same standards as our export offerings,” Flowers noted. “This move allows us to continue growing while mitigating the risks tied to international markets.” The shift comes after a challenging year for the firm. In the year ending December 2024, Kakuzi reported a loss of Sh130.4 million, a sharp decline from the Sh455.6 million profit the previous year. Factors behind the downturn included the strengthening of the Kenyan shilling against the US dollar, which reduced export margins, as well as shipping disruptions in the Red Sea that compromised the quality of some produce, particularly avocados. Kakuzi has traditionally relied on avocado and macadamia exports, but the new tea brand complements its growing domestic product range, which now also includes ready-to-eat macadamia nuts, cold-pressed macadamia oil, and blueberries. Flowers said the domestic strategy is already yielding results, with local sales increasingly contributing to the company’s revenues and providing a buffer against global trade volatility. “Our focus is on producing value-added, quality products that Kenyans can trust, while ensuring our business remains resilient no matter what happens in export markets,” he added. The launch of Kakuzi Pure Black Tea signals a broader trend among agribusiness firms in Kenya to tap into local consumer demand, a move analysts say could help stabilize earnings in an unpredictable global economy.