Kakuzi Plc, the Nairobi-listed agricultural producer, has received temporary relief from the Supreme Court of Kenya in an ongoing land dispute that affects its operations and investor outlook. The company is partly owned by Kenyan businessman John Kimani.
In a decision delivered by a six-judge bench, the Supreme Court suspended a lower court ruling that had awarded about 72 acres (29.1 hectares) of land claimed by Kakuzi to Makuyu Golf Club. The suspension will remain in place pending the hearing and determination of Kakuzi's second appeal, allowing the dispute to proceed to its final stage.
The ruling comes amid wider debate in Kenya over land use and historical claims. In December, the National Land Commission directed Kakuzi to surrender 3,200 acres to local communities, citing historical land injustices. The decision, issued on Nov. 14, 2025, included instructions for land redistribution, verification of beneficiaries, regularisation of public utilities, and the relocation of schools and other public facilities.
Community groups welcomed the commission's decision but stated it did not resolve all outstanding concerns. Representatives from the Kenya Human Rights Commission and the Ndula Resource Centre said several claims were not addressed, including issues related to expired leases, historical evictions, and allegations of violence and forced displacement.
Kakuzi has challenged the land directive, informing investors that it represents a "material risk" to the business. The company has stated that the order could affect constitutionally protected property rights as well as its workforce of about 3,400 employees and its 1,400 shareholders. It has indicated that it will continue to pursue legal remedies.
The legal developments occur alongside changes in Kakuzi's production mix. The company has expanded its portfolio to include roasted macadamia nuts and macadamia oil and has invested in measures aimed at managing climate-related risks. This includes an upgrade to the Nginye dam, adding 1 million cubic metres of water storage capacity to support production.
Financial results for the first half of the year reflected mixed performance. For the six months ended June 30, 2025, profit declined by 15 per cent to Ksh295.5 million (US$2.3 million), compared with Ksh347.5 million (US$2.68 million) a year earlier. The decrease was linked to lower avocado valuations. At the same time, turnover increased by 28.6 per cent to Ksh1.51 billion (US$11.68 million), driven by higher macadamia sales and improved blueberry exports.
Avocado pricing was affected by oversupply in European markets, while the tea segment continued to report losses. The outcome of the land cases now remains a factor for the company alongside crop prices, export demand, and input conditions.
Source: Billionaires Africa
