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2023 ESG REPORT

Fostering Sustainable Development

Balancing Socio-economic Growth with Environmental Stewardship

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Kakuzi at a Glance

Kakuzi PLC, a Kenyan superfood producer, champions sustainable farming across avocados, macadamia nuts, tea, and forestry. Our mission integrates six SDGs into operations for positive impact on people and the planet

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4,420

Livestock

76

Managers

3,526

Employees

510 ha

Under tea production

1,395

Kakuzi NSE Listed Shareholders

Kshs.51 million

Spent in payments to local suppliers and contractors per annum

10 ha

Blueberry production

1500 ha

of sustainable commercial forestry

963 ha

under avocado production

1,356 ha

Macadamia production

Note from the Leadership

Since we began our ESG reporting five years ago we have been engaged in a process that focuses on the future while consciously reviewing our current operations, so they do not compromise the ability of future generations to meet their needs.

Nicholas Nganga

Chairman of the Board

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Note from the Leadership

This report is a demonstration of our dedication to this purpose. We believe that we don't have all the answers to the many challenges being faced by agribusinesses but, by being transparent we are better placed to harness advice from others in this journey of continuous improvement.

Chris Flowers

Managing Director

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Corporate Governance & Integrity

Building Trust Through Transparent Governance

  • Governance Framework
  • Ethical Commitment
  • Transparency & Accountability
  • Governance Framework

    • Kakuzi operates under a robust governance framework involving the Board, three committees(Audit & Risk Committee, Nomination & Remuneration Committee and Legal Risk Committee), and an Independent Human Rights Advisory Committee.
    • Committees focus on risk management, financial oversight, and corporate social responsibility.
  • Ethical Commitment

    • Policies include a Code of Ethics, Anti-Bribery Policy, and Whistleblowing Mechanism.
    • 98% of complaints under the SIKIKA grievance mechanism resolved.
  • Transparency & Accountability

    • We maintain clear communication with stakeholders,
    • Regular reporting and disclosure to all stakeholders
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Key ESG Achievements in 2023

Making an Impact: Our 2023 Milestones

  • Environmental
  • Social
  • Governance
    • 12M cubic meters of rainwater captured and stored in 19 dams.
    • 300 hectares of indigenous trees planted, contributing to 12% of land under forest cover.
    • 100% of macadamia shells were processed into energy or recycled into other purposes.
    • 14% reduction in waste through innovative managment practices.
    • 20% reduction in water usage in the Macadamia Division.

    Shows dedication to sustainability and resource efficiency.

    • over 1,000 households were fitted with energy-saving stoves.
    • Donated pieces of classroom furniture that benefitted over 2500 learners.
    • 727 individuals benefited from free medical camps.

    Supported energy efficiency, health and education initiatives.

    • Introduced a succession planning and diversity policy.
    • Maintained a 98% resolution rate in the SIKIKA grievance mechanism.
    • Operationalized the UN Guiding Principles on Business and Human Rights.
    • Ensured our operations uphold the highest standards of accountability and inclusiveness.

    Enhanced governance with diversity, grievance resolution, and succession planning.

Kakuzi Production Overview

Kakuzi PLC cultivates a diverse portfolio, including macadamias, avocados, blueberry, livestock and commercial forestry, with a commitment to quality, sustainability, and community impact.

  • Overview
  • Macadamia
  • Avocado
  • Blueberry
  • Livestock
  • Commercial Forestry
  • Macadamia Production

    • Production Yield: 600 tonnes in 2023.
    • Size of Production Area: 1,356 hectares.
    • Certification: NFSSC 22000, SMETA (Sedex Members Ethical Trade Audit), and Kosher.
    • Key ESG Initiatives: Repurposing macadamia waste into animal feed and biofuel, and water conservation efforts reducing consumption by 20%.
  • Avocado Farming

    • Production Yield: 14,140 tonnes in 2023.
    • Size of Production Area: Increased from 798 to 987 hectares.
    • Certification: Halal Certification, SMETA (Sedex Members Ethical Trade Audit), GLOBAL GAP, and Rainforest Alliance; packhouse certified with FSSC 22000 and Halal.
    • Key ESG Initiatives: Free maturity testing services and training programs for smallholder farmers and complete traceability from seedling to plate ensuring compliance with market standards.
  • Blueberry Farming

    • Production Yield: 12 tonnes in 2023.
    • Size of Production Area: 10 hectares.
    • Certification: SMETA (Sedex Members Ethical Trade Audit), GLOBAL GAP.
    • Key ESG Initiatives: Hydroponic cultivation to minimize water use, and rainwater harvesting for irrigation.
  • Livestock Keeping

    • Production Yield: 4,506 cattle in 2023.
    • Certification: Halal Certification.
    • Key ESG Initiatives: Grass-fed meat production supporting local entrepreneurship and mobile bomas to enhance grazing management, improve animal welfare, reduce disease spread, and promote sustainability.
  • Commercial Forestry

    • Size of Production Area: 1,600 hectares (300 hectares under indigenous trees).
    • Certification: Rainforest Alliance.
    • Key ESG Initiatives: Contribution to biodiversity by planting indigenous species near water sources, providing employment to up to 500 workers seasonally, and community partnership programs to enhance local livelihoods.
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Community Action

At Kakuzi, we foster community partnerships through targeted initiatives in education, health, welfare, and infrastructure, aligned with the UN Sustainable Development Goals (SDGs).

  • Education
  • Health
  • Economic Empowerment
  • Infrastructure
  • Education Initiatives

    Education Initiatives

    • Installed 10,000-liter rainwater harvesting systems in three schools.
    • Donated pieces of classroom furniture that benefitted over 2500 learners.
    • Renovated Kitito Primary School, benefiting 300 pupils.
    • Launched a scholarship program for 15 students transitioning to secondary school.
  • Health Programs

    Health Programs

    • Organized free medical camps, benefiting 727 individuals.
    • Donated essential maternity equipment to Gikono Dispensary.
    • Constructed rainwater harvesting facilities at Mutithi Dispensary.
    • Promoted menstrual health, donating 2,000 sanitary towels to schoolgirls.
  • Community Welfare

    Economic Empowerment

    • Over 1,000 households fitted with double-energy-saving jikos
    • Trained 101 youth (66 male and 35 female) on jiko kisasa construction
    • Implemented mentorship programs to enhance employability and economic growth
  • Infrastructure Development

    Infrastructure Development

    • Invested in road and bridge construction to improve accessibility
    • Fostered partnerships to enhance community infrastructure and goodwill
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Climate Action

Kakuzi is committed to addressing climate change through sustainable practices that reduce carbon emissions, conserve resources, and enhance biodiversity.

  • Carbon Management
  • Water Conservation
  • Commercial Forestry
  • Resource Efficiency
  • Carbon Management

    Carbon Management

    • Overall carbon footprint reduced, helping the company contribute to environmental sustainability efforts.
    • Consistent measuring of our carbon footprint through our operations with a view to reducing emissions.
    • Successfully reduced our carbon emissions for Scope 1 and 2 over the past two years.
    • Reduced CO2 emissions by 74% through the adoption of new technology in the cold rooms.
  • Water Conservation

    Water Conservation

    • Expanded reservoirs to capture rainwater, providing resilience against drought.
    • Currently capture 12 million cubic metres of wet season rainwater in our 19 earth dams.
    • Maintained our international accreditations to assist us in maintaining the best practices in water management.
    • Implement innovative practices such as hydroponic cultivation in pots to minimise water usage, with rainwater also being utilised in the irrigation process.
    • A 20% reduction in water consumption was achieved.
  • Reforestation

    Commercial Forestry

    • Manage a diverse range of forestry activities across 1,600 ha of sustainable commercial forestry.
    • 12% of land under forest cover.
    • Kakuzi harvests and replants approximately 70 hectares of blue gum, ensuring sufficient volume for production while maintaining sustainability.
    • Our forestry operations support local communities by providing employment opportunities during peak seasons where up to 500 employees are directly employed.
  • Resource Efficiency

    Resource Efficiency

    • Achieved a 20% reduction in water consumption.
    • Reduced power consumption by 16%.
    • The use of cracked macadamia shells as fuel to run boilers has reduced Kakuzi's overall energy consumption.
    • Achieved 14% waste reduction.
    • Achieved 100% recycling/repurposing of macadamia husks and shells.
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Awards

Kakuzi PLC has earned recognition for its leadership in sustainability through various award nominations. These highlight the company’s excellence in environmental stewardship, social impact, and governance practices, driven by innovative approaches in carbon management and sustainable agriculture.

The nominations celebrate Kakuzi’s achievements in waste reduction, water conservation, and community development. By embedding sustainability into its operations, Kakuzi sets a benchmark for responsible business practices while enhancing its positive impact on people and the planet.