#15
KAKUZI
As a major agricultural company in East Africa, Kakuzi PLC stands at the intersection of sustainability and responsible business.
With a broad portfolio of superfoods that includes macadamia nuts, avocados, tea, blueberries and other agricultural produce, Kakuzi nourishes the local and world markets and takes its commitment to the environment, people, and ethical governance seriously.
In an era where consumers increasingly demand sustainable and ethical practices from companies, Kakuzi continues to set an example by integrating Environmental, Social, and Governance (ESG) principles into every aspect of its operations.
Late last year, the firm launched its fifth Environmental, Social, and Governance (ESG) Report, themed “Fostering Sustainable Development: Balancing Socioeconomic Growth with Environmental Stewardship”, at a function graced by the former Agriculture and Livestock Development Cabinet Secretary Dr. Andrew Mwihia.
The recent launch of Kakuzi’s fifth ESG Report highlights its continued leadership in the ESG space with concrete efforts to protect the environment, empower communities, and ensure good governance. This approach aligns with the company’s vision of being a responsible steward of the land and its resources while creating value for all its stakeholders.
As part of enumerating the company’s impacts in the ESG reports over the last five years, the firm’s core focus area – supply chain sustainability – has been pivoted to promote human rights, fair labour practices, environmental progress, and corporate governance. To make resilience, agility and sustainability a reality, the firm has been able to mainstream transparency in how it conducts its business and ensures human rights are protected, adhered to, and guaranteed within and across the company’s different divisions. By respecting and promoting human rights, Kakuzi does not provide lip service as this function is well-funded and resourced at Kakuzi. The firm has invested more than KES 300 million over the years to guarantee progressive human rights sustainability.
Five years ago, Kakuzi became the first corporate organisation in sub-Saharan Africa to constitute and establish an Independent Human Rights Advisory Committee (IHRAC) chaired by former Attorney General Prof Githu Muigai. The independent advisory panel is benchmarked against the United Nations Guiding Principles on Business and Human Rights. In appointing the IHRAC, Kakuzi joined a growing list of globally focused institutions progressively adopting the UN Guiding Principles on Business and Human Rights, such as the global football governing body FIFA, Global Chemicals manufacturer BASF SE, and Adidas, among others.
In adopting an IHRAC as part of its operating arms, Kakuzi is pioneering a public accountability programme in Kenya that demonstrates its commitment to respecting human rights within its operating and supply chain environment. The members of the IHRAC are meant to autonomously advise and review Kakuzi’s action points to ensure that the firm remains at the leading edge of this accountability programme. Above all else, adopting an IHRAC is advantageous to all stakeholders. Human rights standards are fundamental standards that lead to better business accountability.
Kakuzi has also made significant strides in environmental stewardship, recognising that its operations depend on sustainable practices that protect both the land and the broader ecosystem. In 2023, Kakuzi became the first agricultural business in Kenya to publicly report its Scope 1 and Scope 2 carbon emissions, marking a milestone in transparency and responsibility in climate action. In 2023, the firm’s Scope 3 emissions were calculated by the UK’s Carbon Trust and have been included in the 5th ESG report.
As part of its climate action initiatives, Kakuzi has invested in the ‘Nginye Valley Reforestation Project’, an ambitious program to revive indigenous forests in a key water catchment area. Through this effort, Kakuzi is playing a critical role in supporting the Kenyan government’s tree cover initiatives. The company is committed not only to reforestation but also to exploring ways to turn waste into value. By using macadamia shells for pyrolysis, Kakuzi has the potential to produce activated carbon and generate green electricity, moving closer to its goal of carbon neutrality.
Additionally, Kakuzi is exploring investments in renewable energy sources such as solar and wind, showcasing its long-term commitment to reducing reliance on non-renewable resources. With these measures, Kakuzi is positioning itself as a forward-thinking leader in sustainable agriculture.
Kakuzi’s commitment to social responsibility is evident in its extensive community development programs guided by the United Nations Sustainable Development Goals (SDGs). The company focuses on enhancing health, education, and economic opportunities for the communities in which it operates.
In 2023, Kakuzi conducted free medical camps, provided hospital equipment, and engaged in mental health awareness initiatives to promote health and well-being. The company’s ‘Tabasamu’ menstrual hygiene program, designed to provide hygiene products and education to young girls, is an excellent example of Kakuzi’s focus on improving community health outcomes.
Education is another key area of impact for Kakuzi. During the reporting period, the company renovated local schools, provided scholarships for secondary education, and employed additional teachers to improve the quality of education in its operational areas.
Introducing the ‘Safety Marshals’ program demonstrates Kakuzi’s dedication to child safety, ensuring children travel safely to and from school.
In addition to supporting communities, Kakuzi has fostered a strong relationship with its employees. In 2023, the company signed a new Collective Bargaining Agreement (CBA) with the Kenya Plantation and Agricultural Workers Union (KPAWU), resulting in a 16 per cent wage increase over two years. This reflects Kakuzi’s commitment to fair wages and improved working conditions.
The company’s workforce composition also highlights progress in gender diversity. With 30 percent of the management team now female, this signals an inclusive and equitable workplace culture.
At the core of Kakuzi’s success is its strong governance framework, which ensures ethical business practices and robust oversight. The Board of Directors actively oversees all sustainability initiatives, from environmental impact to social engagement, while adhering to
the highest standards of corporate governance. The board’s structure includes committees dedicated to areas such as audit, risk management, and human rights, ensuring that all aspects of the business are managed with transparency and integrity.
Kakuzi’s commitment to good governance is further evidenced by its independent audit, which confirmed that the company’s governance framework meets or exceeds compliance standards. The company additionally engages in ongoing stakeholder dialogue, ensuring that the perspectives of employees, investors, communities, and regulators are incorporated into its decision-making processes.
Transparency is a key priority for Kakuzi, as seen in its timely publication of comprehensive annual and ESG reports. These documents provide stakeholders with a clear view of the company’s operations and the steps being taken to ensure long-term sustainability. The company also takes a proactive stance against fraud and corruption, participating in the Blue Company Project and implementing a whistleblowing policy that allows for the anonymous reporting of unethical behavior.
Kakuzi continues to push the boundaries of what it means to be a responsible business. With ambitious plans for renewable energy, continued investment in community development, and a focus on ethical governance, Kakuzi is well poised and on its way to setting higher standards in the ESG space.
AUTHOR: MARTIN O’NEIL
EDITOR: HILDA NTHENYA
