Dear stakeholders, it is my privilege to present to you the 2024 Kakuzi Environmental, Social, and Governance (ESG) Report, which showcases our continued efforts in our sustainability journey.

The year 2024 saw the agricultural sector contribute to a 4.6% growth in Kenya's overall GDP. The Board and management are proud to be a key contributor in this important sector as we drive the Company forward to be one of the leading agribusinesses in Kenya. Over the last year we have experienced growth in our operations, which can be attributed to the sustainable agricultural practices we have adopted, as well as our expanded product portfolio and market diversification.

In 2023, the Board enacted its new strategy, Growing Together, which focuses on:

• Expanding and diversifying our products
• Increasing our staff capacity
• Greater partnerships within the communities we operate in
• Expansion of our markets across the Country and beyond

With sustainable agriculture practices being at the heart of this journey, our goal has been to grow crops whilst protecting our environmental resources, serve all our stakeholders, and meet customer demands by delivering quality products grown in the heart of Kenyan soils.

The impacts of climate change are already being felt, especially in the agricultural sector, where we witnessed adverse weather conditions such as floods and intense drought. The Board, therefore, developed a mitigation and adaptation process that focused on managing excessively wet and dry conditions. In response to floods, we made land management improvements, including:

• Digging drainage trenches and soil bridging to direct excessive rainwater away from root zones, preventing crop damage
• Increasing our irrigation water holding capacity by a further 1 million cubic meters of water

We now have strategic water resources totalling 13 million cubic meters, or the equivalent of 5,300 Olympic size swimming pools.

Notwithstanding these challenges, the business fundamentals remain positive, as our focus is on improving our agricultural returns from existing crops. We continue to explore additional income streams, market and product diversification both in agriculture and through other investments.

Building on these efforts, there were a number of key successes in 2024:

• The macadamia market recovered from the low returns of the previous year
• Investments in our orchards insulated us from turmoil in the smallholder sector, giving us a market advantage and certainty about future sales volumes
• Gradual rise in macadamia oil sales in the Kenyan market, demonstrating the value customers place on traceable and healthy products
• Expansion of market operations with a specific focus on Macadamia exports to the United States (US), Europe, China, Japan, and the Middle East

We are also targeting further global market access, including the United States, one of the largest avocado markets worldwide. The export conditions for the avocado market are improving, with shipping lines adapting to the new normal, thereby reducing transit times. Technological advances are evident, and some shipping lines are resuming operations through the Suez Canal.

Additionally, we continue to strengthen our governance mechanisms by consistently interacting with our regulators to foster a positive relationship and meet current regulatory expectations. We therefore reaffirm our commitment to upholding the interests of all our stakeholders through continuous innovation, in a progressive and prudent manner, to maintain and create shareholder value.

At Kakuzi PLC, our commitment to responsible agribusiness is anchored in the principles of environmental stewardship, social responsibility, and ethical governance.

This 2024 ESG Report reflects our progress under the “Growing Together” Strategy, showcasing the tangible impact of our initiatives across the business and within the communities we operate.

Over the past year, we have deepened our integration of human rights into daily operations, guided by a strong sense of custodianship and a belief that ethical leadership begins with how we treat people.

Our environmental efforts have focused on:

• Reforesting sensitive catchments
• Managing our carbon footprint
• Expanding water conservation infrastructure, adding over one million cubic meters of storage to support climate-smart agriculture and long-term resilience

We have continued to invest in our communities through:

• Educational support
• Health outreach
• Inclusive engagement forums

These efforts are not peripheral to our business—they are central to how we grow together. By creating jobs, supporting local enterprises, and listening actively to our stakeholders, we strive to create structures that remain transparent, responsive, and grounded in shared values.

Throughout, we have upheld our commitment to producing responsibly grown superfoods that meet the highest global standards for quality, traceability, and sustainability. This report is both a reflection of our journey and a reaffirmation of our values. It underscores our belief that long-term success is built on trust, integrity, and a genuine partnership with the land and people who sustain us.

PK Primary School, located in the Kabati area of Murang'a County, was established in 1982 on a 12-acre parcel of donated land. Situated in a low-income community, the school was built through the collective efforts of local parents who contributed voluntary labour.

“Kakuzi began supporting the school by donating desks, significantly improving the learning environment. Since I took over as the headteacher, the school has received about 25 desks per year from 2021 to 2023,” said Mr Muiruri.

The partnership has been crucial to improving the school's learning conditions, particularly by providing desks for students. With an enrolment of 1,848 pupils, the additional seating has eased pressure on facilities and enhanced classroom comfort.

The school leadership expressed appreciation for the ongoing support, noting the durability and practicality of the desks. The partnership has significantly improved the learning environment by easing the financial burden on parents, enhancing student comfort, and uplifting overall morale. These efforts have transformed classroom conditions, strengthened the school's reputation, and deepened its relationship with Kakuzi.

The headteacher affirmed that Kakuzi's support has been instrumental in improving school infrastructure and access to essential learning resources, particularly for students from low-income households. The school has a total student population of 1,848, comprising 995 boys and 853 girls.

Kakuzi's consistent donation between 2021 and 2023 demonstrates sustained support for learning infrastructure. In 2024, the company extended its assistance by providing 5 additional desks and chairs specifically for teachers, further enhancing classroom management and instructional delivery.

Kakuzi's donations have greatly impacted learners from Early Childhood Development (ECD) to upper primary levels. Students in Grades 1 to 4 have directly benefited from the improved seating arrangements, with the support spanning multiple grade levels to ensure an inclusive approach.

Kenneth Kariuki is a carpenter and timber processor based in Makuyu, Murang'a County. For over a decade, Kariuki has served customers from his local community, offering high-quality furniture and timber products.

The 44-year-old family man's craftsmanship and entrepreneurial spirit have created employment opportunities, offering three stable jobs and hands-on training in carpentry and timber processing.

According to Kariuki, starting was tough. I didn't have much capital. I had to work with what I had, that is, basic tools and a small working space. Kariuki reminisced about the days he would wonder if he would make it. Transport was and still is a big challenge. In this line of work, you must move timber, deliver furniture to customers, and sometimes even collect raw materials from far-off places. Without a proper means of transport, I depend on hired vehicles or even pushcarts, which limits my ability to grow quickly.

Since my workshop is just near Kakuzi, one of the managers at the company from the forestry department noticed my work, and one day he approached me and enquired if I would make some products for them. Kariuki narrated. This became his turning point. Through Kakuzi, he could access quality timber, which completely transformed his work. My products improved significantly. The chairs, tables, beds, and other products I produced at the workshop started drawing attention. Customers started noticing the difference and began recommending him to their friends and family.

His workshop, located near Makuyu town, looks like a typical yard. As Kariuki puts it, he may not have all the equipment he dreams of yet, but he has returning customers and steady orders. He said he has learnt how to manage his income carefully enough to keep the business running and care for his family. That's something I'm truly proud of.

Additionally, Kakuzi entrusted him with making furniture for them. With time, Kakuzi has entrusted me with processing timber and making a range of wooden furniture such as desks, lockers and chairs for them. These items have formed part of Kakuzi's social investment initiatives. said Kariuki.

He said he is proud of his work because he has realised that, by extension, he is supporting educational infrastructure and improving the learning environment for hundreds of school-going children within his locality.

Kariuki's dream is to establish a larger timber and furniture yard, which would enable him to scale operations, reach new markets, and create more employment opportunities.

Jacinta Wambui has rewritten the narrative of heavy equipment operator at Kakuzi, igniting aspirations and admiration from peers.

At first, some of her colleagues were curious and unsure, wondering how she would take on the challenge of operating a tractor. A few found her choice unexpected because men traditionally hold this role. But for Jacinta, working with machinery feels natural. With confidence and ease, she's reshaping perceptions and challenging longstanding gender norms in agriculture, where women are often assigned manual, labour-intensive roles, while men typically take on mechanical and transport-related tasks.

Jacinta's story is not a chronicle of resilience but a beacon of hope and a path for many young women considering careers in heavy equipment or tractor operations.

The mother of 2 joined Kakuzi in October 2022 as a machine operator. This job requires operating farm equipment, discing, land lasering, levelling, spraying, cutting grass, and even harvesting. Her duties range from normal to more complex labour responsibilities requiring incumbents to take initiative, make judgment calls, and make decisions for their assigned process.

“I operate a tractor on the farm, which involves ploughing and levelling the land to prepare for planting. I also cut and package grass for livestock stores and transport other products like firewood and timber,” Jacinta said.

Jacinta developed an interest in automotive while in primary school. “I used to get awed whenever I watched mechanics work on a vehicle, particularly a truck. As time went by, I became captivated by the intricate automotive world. This fuelled my love for motor vehicles and gave me the confidence to believe that one day, I could be a part of that world.”

Her typical working day starts at 6:30 am when she reports to the farm manager, who allocates duties and the machines. “Before everything else, I do the daily morning routine checks like fuel level, any loose nuts, tyre pressure, plus any mechanical issues before I start my duties,” she said.

She also supports maintenance by checking oil, fuel, tyres and mechanical parts to ensure the tractor and equipment function properly and serve their purpose when required.

The team at Kakuzi has been very supportive, and according to her, the job has been rewarding. “I have been able to pay school fees for my kids and my bills.”

Her message to other women is a clarion call, an echo of self-belief and fortitude.