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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

Shareholders listed in the NSE

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
  • Diversity and Inclusion
  • Governance Framework

    • Kakuzi operates under a robust governance framework involving the Board, three committees, 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.
  • Diversity and Inclusion

    • Achieved 12.5% female representation on the Board.
    • Ongoing efforts to enhance gender balance and inclusivity.
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Key ESG Achievements in 2023

Making an Impact: Our 2023 Milestones

  • Environmental
  • Social
  • Governance
    • 100% of macadamia husks were composted, contributing to soil fertility
    • 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.
    • 12M cubic meters of rainwater captured.
    • 400 hectares of indigenous trees planted, contributing to 12% of land under forest cover.

    Shows dedication to sustainability and resource efficiency.

    • 727 individuals benefited from free medical camps.
    • 395 classroom furniture pieces donated to schools.
    • 640 energy-saving jikos distributed to households.

    Supported health, education, and energy efficiency initiatives.

    • Introduced a succession planning and diversity policy.
    • Maintained a 98% resolution rate in the SIKIKA grievance mechanism.
    • 12.5% female representation achieved at the Board level.

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

Kakuzi Production Overview

Kakuzi PLC cultivates a diverse portfolio, including macadamias, avocados, tea, and forestry, with a commitment to quality, sustainability, and community impact

  • Overview
  • Macadamia
  • Avocado
  • Livestock
  • Bees
  • Blueberry
  • Macadamia Production

    • By 2023, macadamia occupied 1,356ha
    • Production yield: 4,600 tonnes
    • 20% reduction in water consumption in macadamia farming
    • Employment in macadamia operations: 600-700 workers majority women

    Exported to United States, Europe, and Asia

  • Avocado Farming

    • By 2023, avocado occupied 963ha
    • Production yield: 14,153 tonnes
    • Three main varieties: Hass, Pinkerton, Carmen
    • Harvest season extended from February to September
    • Free maturity testing services provided to smallholder farmers
    • Certified under Rainforest Alliance, GLOBAL GAP, Halal, and SMETA
    • 85% exportable pack-out achieved through advanced techniques
  • Livestock Keeping

    • By 2023, livestock included 800 cattle and 551 goats
    • Largest contributor to Kakuzi's carbon footprint mitigated by sustainable practices
    • Mobile bomas used for even manure distribution, improving soil fertility
    • Livestock breeding program ensures all animals are farm-raised
    • Robust record-keeping system for traceability from birth to slaughter
    • Value addition through the “Boran Barn” eatery offering ready-to-cook meat

    Contributing to local markets and sustainable grazing practices

  • Bees and Honey Production

    • By 2023, 700 beehives produced 2,000kg of honey
    • Plans underway to expand to 1,000 hives and 3,000kg honey by 2024
    • Bees play a crucial role in crop pollination and biodiversity conservation
    • Sunflowers planted around beehives to ensure year-round food sources
    • Engaged local communities through training and donated beehives
    • Honey production serves as an additional income stream and supports environmental sustainability

    Promoting biodiversity and economic empowerment

  • Blueberry Farming

    • By 2023, blueberries occupied 10 hectares
    • Production yield: 12 tonnes
    • 65% of blueberries exported, 35% sold locally and in regional markets
    • New cultivars introduced: Dupree, Rozita, and Rayme
    • Cultivation under polytunnels for optimal growing conditions
    • Hydroponic systems and rainwater used to minimize water consumption
    • Stringent sorting and packing ensure premium quality

    Exported to Nigeria, Ivory Coast, and Eastern & Central Africa

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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
  • Welfare
  • Infrastructure
  • Education Initiatives

    Education Initiatives

    • Renovated Kitito Primary School, benefiting 300 pupils
    • Donated 395 desks and 12 computers to local schools
    • Hired 6 teachers to improve the student-teacher ratio
    • Launched a scholarship program for 15 students transitioning to secondary school
    • Installed 10,000-liter rainwater harvesting systems in three schools
  • 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

    Community Welfare

    • Distributed 640 energy-saving jikos to households
    • Trained 61 youth in energy-efficient stove construction
    • Implemented mentorship programs to enhance employability and economic growth
  • Infrastructure Development

    Infrastructure Development

    • Rebranded Corporate Social Investment to Company Community Partnerships (CCPs)
    • 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
  • Reforestation
  • Resource Efficiency
  • Carbon Management

    Carbon Management

    • First Kenyan agribusiness to publicly report Scope 1, 2, and 3 emissions
    • Implemented practices to mitigate negative environmental impact
    • Exploring additional methods to reduce atmospheric carbon
  • Water Conservation

    Water Conservation

    • Captured 12 million cubic meters of rainwater across 19 dams
    • Plans to increase storage capacity by 1 million cubic meters
    • Maintained efficient water usage for sustainable farming
  • Reforestation

    Reforestation Efforts

    • Planted 400 hectares of indigenous trees
    • Achieved 12% land cover under forest
    • Enriched riparian areas to enhance biodiversity
  • Resource Efficiency

    Resource Efficiency

    • Composted 100% of macadamia husks to enrich soil
    • Repurposed 100% of macadamia shells as energy or biofuel
    • Reduced waste by 14% through innovative management practices
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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.