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SASINI
Agribusinesses in regions blessed with fertile soils and favourable climates are pivotal to economic growth, driving significant contributions to gross domestic product (GDP) and providing livelihoods for millions.
In Kenya’s vibrant agricultural landscape, Sasini PLC emerges as a beacon of success and resilience. From its humble beginnings in 1952, this pioneering company has evolved into a diversified agribusiness powerhouse, playing a crucial role in Kenya’s economy. Sasini’s journey is a testament to strategic vision, adaptability, and a commitment to sustainable growth.
Originally known as Doondu Estates, the company started with a single coffee farm in Kiambu District (now Kiambu County). By 1959, the company had expanded, acquiring three additional coffee farms in the same region. This expansion necessitated a shift from a private company to a public entity in 1960, positioning Sasini as one of the oldest firms on the Nairobi Securities Exchange (NSE).
In the spirit of diversification, Sasini ventured into the tea industry in 1964 by acquiring a significant stake in Kipkebe, located in the Western Rift Valley. By 1965, Sasini had fully acquired Kipkebe, solidifying its presence in the tea sector. The company’s expansion continued with the purchase of Mweiga Estate, a major coffee farming operation in the Central Highlands. This acquisition also included interests in the tourism sector, notably the Aberdare Country Club and The Ark Lodge, nestled in the iconic Aberdare National Park.
For many years, Sasini operated under the name Sasini Tea and Coffee, focusing on its core products. However, recognising the need to diversify beyond its traditional offerings, the company rebranded to Sasini Ltd in 2007 and subsequently to Sasini PLC in 2017. This transformation marked a pivotal shift towards a comprehensive agribusiness strategy, expanding beyond its traditional tea and coffee focus to include avocado and macadamia nut operations. Additionally, Sasini diversified into branded tea and coffee products, coffee milling, and tea exports. These proactive initiatives underscore Sasini’s commitment to adapting to industry trends and broadening its product portfolio.
Despite navigating through global economic challenges, geopolitical disruptions, and prolonged adverse weather conditions in 2023, Sasini demonstrated remarkable resilience. Lower production volumes, reduced price realisations, and increased production costs posed significant challenges across all units during the year. However, Sasini responded with resilience, enhancing operational efficiency, implementing robust cost containment measures, and making strategic investments in the latter half of the year. Notwithstanding falling short of initial expectations, Sasini maintained profitability, supported by favourable currency dynamics.
Key segments such as Tea, Avocado, and Coffee trading emerged as profitable, with the Tea business achieving record operational performance. This success was driven by advancements in automation, manufacturing efficiencies, and the expansion of out-grower networks. The Avocado unit notably rebounded from a slow start to deliver impressive results.
As of May 2024, Sasini reported a notable 32.1 percent increase in turnover compared to the previous year, despite challenges like high production costs and depressed commodity prices. Optimistic about the future, Sasini anticipates improved tea prices, resumed avocado shipments, increased coffee trading volumes, and a recovering nuts business. With stringent cost management in place, Sasini is poised for increased profitability in the upcoming periods.
Sasini has firmly embedded sustainability into its core operations. The company’s strategic plan prioritises sustainable growth, operational efficiency, and innovation. Key initiatives include robust integration of Environmental, Social, and Governance (ESG) principles into its business practices, alongside alignment with the United Nations’ Sustainable Development Goals (UN SDGs). Presently, Sasini actively drives nine out of the 17 SDGs, demonstrating tangible progress in its commitment to sustainability.
This commitment is further reflected in Sasini’s emphasis on product diversification, resource mobilisation, and strategic partnerships. The company aims to create a meaningful impact by focusing on people, the planet, and profits. This triple bottom line approach ensures that Sasini not only enhances shareholder value but also contributes positively to the community and environment.
At the helm of Sasini’s strategic direction is Group Managing Director (MD) and Chief Executive Officer (CEO) Martin Ochien’g. Appointed in March 2019, Martin brings over 30 years of experience in international trade, business management, and leadership. His career spans significant roles in organisations such as 3M Healthcare, Pfizer Inc., KWV International, and Tyco International.
Martin’s managerial acumen is fortified with a Master of Business Administration (MBA) degree in Strategic Marketing and Management from Oxford Brookes University, UK, and a First Class Honours Bachelor of Science (BSc.) degree from Moi University, Kenya. His expertise in strategic planning and marketing has been instrumental in navigating Sasini through its recent expansions and innovations.
Beyond his role at Sasini, Martin’s thought leadership earned him the Chair position of the UN Global Compact Network Kenya. This prestigious role aligns perfectly with Sasini’s commitment to pioneering sustainable business practices, which are fundamental to enhancing business performance.
Under the dynamic leadership of Martin and the strategic guidance of the board, under the chairmanship of Dr. James McFie, Sasini is on a trajectory of sustained success. Together, they are driving the company to new heights, significantly contributing to Kenya’s economy and establishing Sasini as a formidable presence in the global agribusiness landscape.
