2021 Kakuzi ESG Report

This report represents our holistic approach to enumerating our Environmental, Social and Governance (ESG) impact across our business. The report also highlights our commitment to sustainability, aligned with the UN Sustainable Development Goals (SDGs) framework. This report details Kakuzi’s ESG progress for the financial year 2021. The report covers all the business divisions, including showcasing the integrated initiatives the Company has undertaken in aligning operations with best-inclass sustainability principles as a superfood producer. This report also showcases critical areas of operations across the business within the six adopted SDGs.

About Kakuzi

Kakuzi is a Public Limited Company (PLC) cross-listed in the Nairobi Securities Exchange (NSE) and London Stock Exchange (LSE). The Company, is listed as an agricultural Company engaging in the cultivation, processing and marketing of avocados, blueberries, macadamia, tea, livestock and commercial forestry.

The Company is a leading superfood producer with decades of experience supporting food security and economic development in Kenya by generating revenue, enhancing livelihoods and improving living standards for employees, customers, community and shareholders

Word from the Leadership
Chairman of the Board:

Nicholas Nganga

Emerging from the COVID-19 pandemic, we are coming from the cusp of one of the most unprecedented events in our lifetime. We are aware that as a superfood producer, Kakuzi is a key contributor to people’s well-being and livelihoods, the country’s economic development and food security within Kenya and the region.

The values we hold as a Company are fundamental to our business and go beyond our agricultural operations into the work we do with communities, the welfare of our employees and our long-term environmental sustainability. Our business does not and cannot operate in isolation as we are part of the wider ecosystem in Murang’a County and beyond.

In the year, we have continued the focus on our six SDGs. Our work in education has further enhanced learning opportunities for the 5,000 children attending schools located within our boundaries and we will continue to expand these initiatives in the coming years.

in health, we continue working alongside other organisations to provide invaluable preventive, promotive and curative health for vulnerable communities.

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Managing Director:

Chris Flowers

In 2019, Kakuzi PLC became the first listed Kenyan agricultural company trading on the NSE (Nairobi Securities exchange) to release its Environmental, Social, and Governance report.

As a Company, we are demonstrating some of the best agricultural practices, environmental protection and enrichment, and the social well-being of our employees and surrounding communities.

During the year, the journey to access the China market started. The China fruit market is very advanced as far as the consumption of agricultural commodities including superfoods such as avocado is concerned. The regulatory entry process was stringent, and the consumers are incredibly discerning and quality conscious. However, we were up to the task and committed to maintaining the Kakuzi quality consistency for all our exports to China, among other markets.

As a Company, we support the 10 principles of UN Global Compact on human rights, labour, environment and anti-corruption, and we have been implementing them. We have also made the Global Impact and its principles part of our strategy, culture and day-to-day operations.

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Corporate Governance and Integrity

The board and it's role

As a Company that is on a mission to consistently produce quality products responsibly, sustainably and ethically, Kakuzi PLC has a Board that ensures that the organisation is on the right path to achieve those objectives.

The Kakuzi Board consists of the Chairman, who has non-executive responsibilities, five non-executive directors and two executive directors. The Board meets quarterly and is responsible for establishing the corporate governance pillars, setting the strategic direction, reviewing business performance and guidance to the management of Kakuzi.

The Kakuzi Board is responsible for ensuring that Corporate Governance works by developing policies that are responsive and forward looking to the needs of shareholders and stakeholders.

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Product Highlights
Macadamia Farming

Overview

Macadamia is a core strategic crop at Kakuzi PLC, and in 2021 it occupied 1,032 hectares. The Company only processes and supplies macadamia nuts from its orchards since they are within its control, making it easy

Kakuzi PLC believes in the “Farm to Fork” concept, with traceability at its core. The Company traces the movement of its macadamia through steps in the organisational chain, from farm to consumer, and vice versa. Being one of the flagship products, macadamia nuts are both exported and sold locally to MSMEs for processing into other by-products.

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Materiality

Respecting and Promoting Human Rights

Human right and gender equality are at the core of the 2030 Agenda for sustainable development. To strengthen human rights within Kakuzi, the company has mainstreamed human rights in line with UNGP Human Rights Standards.

Community Action

I n 2021, Kakuzi continued with its Corporate Social Investment (CSI) programmes with initiatives covering education, economic empowerment, environmental management and sanitation, consequently realising our objectives for SDGs 3, 4, 5, and 6.

Climate Action

Human right and gender equality are at the core of the 2030 Agenda for sustainable development. To strengthen human rights within Kakuzi, the company has mainstreamed human rights in line with UNGP Human Rights Standards.

Product Safety, and Quality

Kakuzi food safety objectives are hinged on the establishment and review of the food safety policy and food safety training of our internal personnel, stakeholders and interested parties.

Supply Chain Management

The Kakuzi avocado smallholder programme focuses on the economic empowerment of smallholder avocado farmers through sharing skills and knowledge on avocado growing and overall good agricultural practices.

Our Community

To promote safety of schoolgoing children, Kakuzi PLC has employed female safety marshals who walk with the students to and from school. The programme began with six women and currently has more than 30 safety marshals augmenting our offering to SDG 5. The safety marshals are community members who live in the surroundings and are known by the parents and students.

Safety measures include uniforms and reflector jackets that make them easily recognisable to the children. As part of Kakuzi’s continued effort to ease movement and transportation for the communities around its operations, the Company rehabilitated Kahuruko-Sunset Road.

In line with contributing to SDG 4, Kakuzi PLC continued to donate school furniture to various institutions within Murang’a County. The Company donated classroom desks to Maranjau GK Prison, facilitating the correctional facility to offer education programmes effectively to over 300 inmates, and also supporting the facility to adhere to COVID-19 public health guidelines of social distancing.

Further, during the reporting period, Kakuzi Primary School got a facelift and structural rehabilitation, benefiting over 400 pupils, including donating 1,510 desks to 28 learning institutions that support more than 2,500 learners within Murang’a County.

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