Sasini Plc

Sasini PLC stands as one of Kenya's premier and longest-established agribusiness enterprises, with a distinguished history spanning over seven decades. Listed on the Nairobi Securities Exchange since 1960, Sasini has evolved from a single coffee estate into a diversified agricultural conglomerate that plays a vital role in Kenya's economy and global agricultural supply chains.

Founded in 1952 as Doondu Estates Ltd in the Central Highlands of Kenya, Sasini has demonstrated remarkable adaptability and strategic vision throughout its evolution. The company has successfully navigated the complexities of agricultural commodity markets, expanded its product portfolio, and maintained its commitment to sustainable practices while delivering value to its over 6,000 shareholders, predominantly Kenyan investors.

Today, Sasini operates as an integrated agribusiness with operations spanning tea cultivation and processing, coffee production, avocado exports, macadamia nut processing, and retail consumer products. With over 4,000 employees and operations across multiple regions of Kenya, the company has established itself as a leader in sustainable agriculture, implementing innovative technologies and adhering to international quality standards.

Quick Facts

Corporate Overview

Sasini PLC operates as a publicly quoted company on the Nairobi Securities Exchange with a diverse shareholder base representing Kenya's investment community. The company is a member of the Sameer Group of Companies, one of Kenya's largest and most diversified conglomerates with investments spanning multiple sectors of the economy.

The Merali family, through their investment vehicles Legend Investments Limited, Yana Towers Limited, and East Africa Batteries Limited, maintains a controlling stake of 65.46% in Sasini PLC. This stable ownership structure has provided the strategic continuity necessary for long-term planning and sustainable growth.

Corporate Structure

Sasini PLC operates through several wholly-owned subsidiaries and business units:

• Kipkebe Limited - Manages tea operations in the Rift Valley region
• Mweiga Estate Ltd - Coffee farming operations in Central Highlands
• Sasini Avocado Ltd - Avocado processing and export operations
• Sasini Fruits & Nuts EPZ Kenya Limited - Macadamia processing in Export Processing Zone
• Aristocrats Coffee Tea Exporters Limited - Export operations
• Keritor Limited - Additional tea manufacturing capacity

Vision and Mission

Vision: To be the leading sustainable agribusiness in Africa.

Mission: To create lasting value for stakeholders by balancing profitability with environmental and social responsibility, while delivering high-quality agricultural products to global markets.

Historical Evolution

Foundation Era (1952-1960)

Sasini's journey began in 1952 in colonial Kenya, eleven years before the country's independence. Originally incorporated as Doondu Estates Ltd, the company started with a single coffee farm in Kiambu District in Kenya's Central Highlands. Recognizing that growth was essential for survival and prosperity, the young enterprise acquired three additional coffee farms in the same region by 1959.

The year 1960 marked a pivotal transformation when the company converted from a private to a public company, listing on what would become the Nairobi Securities Exchange. This strategic decision provided access to capital markets and positioned Sasini as one of the oldest listed firms in Kenya.

Diversification into Tea (1964-1970)

Understanding that agricultural risks are best managed through product diversification, Sasini made its first major expansion beyond coffee in 1964 by acquiring a significant stake in Kipkebe Ltd, a tea operation located west of the Rift Valley. By 1965, Sasini had acquired 100% ownership of Kipkebe Limited, establishing a strong foothold in Kenya's tea industry.

The company further strengthened its coffee portfolio through the acquisition of majority shareholding in Mweiga Estate Ltd, which operated extensive coffee farms in the highland zones of the Mount Kenya region.

Consolidation and Rebranding (1970-2007)

For several decades, the company operated as Sasini Tea and Coffee Limited, focusing on its two flagship products. During this period, the company developed expertise in cultivation, processing, and marketing of both commodities, establishing strong relationships with international buyers and building a reputation for quality.

Modern Transformation (2007-Present)

In 2007, Sasini underwent a strategic reimagining of its business model, recognizing that it had evolved into a comprehensive agribusiness enterprise. The company had diversified into horticulture, tourism, and forestry, moving beyond its traditional tea and coffee base. To reflect this expanded scope, the company changed its name to Sasini Ltd in 2007, and subsequently to Sasini PLC in 2017 to comply with Kenya's Companies Act provisions for public listed companies.

The company continued its diversification strategy by launching branded tea and coffee products for the retail market, establishing coffee milling operations in Kiambu, and expanding tea export trade operations in Mombasa. In 2017, Sasini entered the avocado export business through its subsidiary Sasini Avocado Ltd, targeting premium markets in the UK, Europe, and the USA.

The macadamia nuts business was launched in 2019 after completing factory construction in 2018, with operations based in an Export Processing Zone in Kiambu County. This marked another strategic move into high-value agricultural commodities with strong export demand.

Financial Performance

Sasini PLC's financial performance has demonstrated significant volatility characteristic of agricultural commodity businesses, which are subject to weather patterns, global price fluctuations, and geopolitical factors. The company has navigated challenging market conditions while pursuing strategic investments in growth and sustainability.

Recent Financial Results

Fiscal Year 2024 (Ended September 30, 2024):

The company reported a challenging year with a loss after tax of KES 562.9 million, contrasting sharply with the profit of KES 542.6 million achieved in the previous year. Despite this setback, revenue increased by 20.6% to KES 6.89 billion from KES 5.72 billion, demonstrating strong top-line growth.

The loss was primarily attributed to a 45.09% increase in cost of sales to KES 6.3 billion, driven by higher production costs, increased logistics expenses due to geopolitical factors including Middle East conflicts and Suez Canal disruptions by Houthi rebels, and elevated finance costs.

However, the company's balance sheet strengthened significantly, with total assets growing 54.52% to KES 25.19 billion from KES 16.3 billion, and total equity increasing 53.86% to KES 21.25 billion from KES 13.81 billion.

Fiscal Year 2025 Full Year Results:

The company demonstrated remarkable resilience and recovery in FY 2025, returning to profitability with an after-tax profit of KES 188 million, a significant turnaround from the KES 562.9 million loss in FY 2024. Revenue rose sharply by 22.5% to KES 8.44 billion from KES 6.89 billion.

The recovery was driven primarily by exceptional performance in the coffee business, which benefited from significantly higher global coffee prices. Fair value changes on biological assets surged 1,544% to KES 558.8 million, instrumental in the company's return to profitability. Total shareholders' equity rose to KES 21.4 billion from KES 21.3 billion.

Half Year 2025 Results (Six months ended March 31, 2025):

The first half of FY 2025 presented challenges with a loss of KES 113.1 million compared to a loss of KES 37.7 million in the same period of the previous year. Revenue declined slightly by 7.6% to KES 2.94 billion from KES 3.19 billion. However, the company recorded positive fair value gains of KES 133.7 million on biological assets, reversing a loss of KES 135.5 million in H1 2024.

Historical Performance Trends

Historical analysis reveals the cyclical nature of Sasini's business:

• 2019: Significant loss impacted by declining tea and coffee prices and adverse weather conditions
• 2020: Break-even performance as management implemented turnaround strategies
• 2021: Return to profitability with net profit of KES 573.2 million
• 2022: Peak performance with record net profit of KES 1.17 billion, driven by favorable coffee prices and production volumes
• 2023: Strong profitability maintained
• 2024: Loss year due to cost pressures and market challenges
• 2025: Return to profitability driven by coffee sector recovery

Dividend Policy

Sasini has maintained a commitment to returning value to shareholders through consistent dividend payments, reflecting confidence in long-term profitability:

• 2019: KES 0.50 per share
• 2020-2022: Progressive increases
• 2023: KES 1.50 per share (final dividend KES 0.50)
• 2024: KES 0.50 per share (final dividend)
• Recent interim dividends: KES 1.00 per share declared in 2022 and 2023

Business Model

Sasini operates an integrated agribusiness model that encompasses the entire value chain from cultivation through processing, packaging, and marketing. This vertical integration provides quality control, operational efficiency, and the ability to capture value at multiple stages of production.

Revenue Streams

The company's revenue is diversified across four primary product categories:

Tea Operations (50-54% of revenue): Sasini grows, processes, and markets bulk tea through the Mombasa auction and direct sales to international customers. Approximately 99% of tea production is exported to the UK, Europe, and Middle East markets. The company operates 1,463 hectares of tea estates in Sotik and Nyamira areas west of the Rift Valley, with two CTC tea factories (Kipkebe and Keritor) having combined annual capacity of 12,000-15,000 MT of black CTC tea.

Coffee Operations (30-35% of revenue): Coffee is grown on six independent estates in the Central Highlands covering 775 hectares with annual production capacity of approximately 1,200 MT. Coffee operations have shown strong performance recently, benefiting from favorable global price realizations.

Macadamia Nuts (10-12% of revenue): Processing operations launched in 2019 in an Export Processing Zone in Kiambu County. The company sources mature nuts from managed regional farms and has intercropped macadamia trees with coffee in its estates. Average export prices improved to $11.33 per kg in FY 2024 from $7.78 per kg previously.

Avocado Exports (5-8% of revenue): Sasini Avocado Ltd packs and exports Hass and Fuerte avocados to the UK, Europe, and USA markets. About 50% of avocados are sourced from contracted out-growers. The business maintains rigorous traceability systems and ISO 17025 certified laboratory testing for Maximum Residue Levels (MRLs).

Retail Products (Smaller contribution): Branded tea and coffee products for domestic consumption, sold through major retail outlets across Kenya.

Value Chain Integration

Estate Management: Own and manage large-scale plantations with professional agricultural practices

Out-grower Programs: Source additional raw materials from qualified contracted farmers, particularly for avocados and macadamia

Processing Facilities: Operate modern processing plants for tea, coffee, and macadamia with quality control systems

Warehousing: Maintain tea warehousing facilities in Mombasa for efficient export logistics

Marketing and Sales: Direct relationships with international buyers and participation in commodity auctions

Retail Distribution: Branded consumer products through retail channels

Operational Excellence

Sasini emphasizes operational efficiency through:

• Professional estate management with experienced agricultural teams
• Investment in modern processing equipment and facilities
• Quality management systems and international certifications
• Strategic locations for production and logistics
• Diversification to manage commodity price risks

Products and Services

Tea

Product Range: Black CTC (Crush, Tear, Curl) tea for bulk export and blending

Production Capacity: 12,000-15,000 MT annually from two factories

Cultivation Area: 1,463 hectares in Sotik and Nyamira

Supply Sources: Own estates and selected out-growers

Markets: UK, Europe, Middle East (99% export)

Distribution: Mombasa auction and direct sales

Brands: Retail branded tea for domestic market

Coffee

Varieties: Premium Arabica coffee from highland estates

Production Capacity: Approximately 1,200 MT annually

Cultivation Area: 775 hectares across six estates in Central Highlands

Processing: Milling operations in Kiambu

Quality: High-altitude grown coffee with distinctive profiles

Markets: International specialty coffee buyers

Brands: Retail packaged coffee for domestic consumption

Avocados

Varieties: Hass and Fuerte (primary), Pinkerton and Jumbo (on demand)

Sourcing: 50% from own cultivation, 50% from contracted out-growers

Processing: Pack house at Sameer Industrial Park with modern facilities

Quality Standards: EU specifications, MRL testing through ISO 17025 labs

Certifications: Global G.A.P (farms), SMETA (pack house), KEPHIS (phytosanitary)

Markets: UK, Europe, USA

Export Launch: 2017

Logistics: Air and sea freight from strategically located facilities

Macadamia Nuts

Product: Processed macadamia kernels

Facility: State-of-the-art processing factory in EPZ, Kiambu County

Sourcing: Regional contracted farms and own intercropped plantations

Markets: Domestic and international export

Launch: Commercial processing began 2019

Future Supply: Intercropped macadamia with coffee in estates for sustainability

Quality Certifications and Standards

Sasini maintains numerous certifications demonstrating commitment to quality and sustainability:

• Global G.A.P certification for farming operations
• SMETA (Sedex Members Ethical Trade Audit) for pack house operations
• KEPHIS phytosanitary compliance
• ISO 17025 certified laboratory partnerships for testing
• Export Processing Zone status for macadamia facility
• Horticultural Crop Directorate licensing (Agriculture and Food Authority)

Technology and Innovation

Sasini has embraced technological advancement as a cornerstone of its operational strategy, implementing cutting-edge solutions to enhance productivity, reduce environmental impact, and improve quality across all operations.

Agricultural Technology

Mechanized Tea Harvesting: The company has invested in mechanized harvesting equipment for tea, significantly improving efficiency and reducing labor costs while maintaining quality standards. This technology represents a major advancement in an industry traditionally reliant on manual plucking.

Drone-Based Fertilizer Application: Sasini employs drone technology for precision fertilizer application, ensuring optimal nutrient delivery while reducing waste and environmental impact. This innovation improves coverage consistency and reduces application costs.

Climate-Smart Agriculture: Implementation of agricultural practices designed to increase productivity while building resilience to climate change and reducing greenhouse gas emissions. This includes water conservation techniques, soil management, and crop selection strategies.

Digital Transformation

Sage X3 ERP Implementation: In FY 2025, Sasini successfully rolled out the Sage X3 Enterprise Resource Planning system, marking a major milestone in digital transformation. The new ERP system enhances:

• Financial reporting accuracy and timeliness
• Operational management and visibility
• Supply chain coordination
• Data-driven decision making
• Integration across business units

Energy Innovation

Solar Power Generation: Sasini has commissioned a 1.5MW solar generation station that provides 25-30% of power requirements for tea factories, reducing reliance on the national grid and lowering operational costs while advancing sustainability goals.

Clean Energy Focus: The company continues expanding its use of sustainable and clean energy across manufacturing processes, aligning with SDG 7 (Affordable and Clean Energy).

Traceability and Quality Systems

Advanced Traceability: Rigorous traceability systems track produce from field to export, particularly important for avocado operations to meet international market requirements and food safety standards.

Laboratory Testing: Partnership with ISO 17025 certified laboratories for testing Maximum Residue Levels (MRLs) and ensuring product safety and quality compliance.

Processing Innovation

Modern Processing Facilities: Investment in state-of-the-art processing equipment for tea, coffee, and macadamia operations, incorporating automation where feasible to improve consistency and efficiency.

Regional Operations

Sasini's operations span multiple regions of Kenya, strategically located in areas with optimal growing conditions for its various crops. The company's geographic diversification helps manage weather-related risks and enables production of different commodities suited to distinct microclimates.

Central Highlands

Location: Kiambu County and Mount Kenya region

Primary Crops: Coffee, Macadamia

Key Estates: Six independent coffee estates totaling 775 hectares

Infrastructure: Macadamia processing factory in EPZ, coffee milling operations

Advantages: High altitude, rich volcanic soils, ideal climate for premium Arabica coffee

Rift Valley Region

Location: Sotik and Nyamira areas, west of the Rift Valley

Primary Crop: Tea

Key Operations: Kipkebe Limited, Keritor Limited

Estate Size: 1,463 hectares of tea plantations

Processing Capacity: Two CTC tea factories (Kipkebe and Keritor)

Annual Capacity: 12,000-15,000 MT of black CTC tea

Supply Chain: Own estates plus selected out-growers

Nairobi and Industrial Parks

Location: Nairobi metropolitan area, Sameer Industrial Park

Operations: Corporate headquarters, avocado pack house, administrative functions

Headquarters: 3rd Floor, Rivaan Centre, Brookside Grove, Nairobi

Pack House: Sameer Industrial Park with air and sea freight access

Mombasa Port Operations

Location: Kenya's principal port city

Functions: Tea warehousing facilities, export logistics coordination

Strategic Importance: Critical for accessing international markets via sea freight

Export Operations: Aristocrats Coffee Tea Exporters Limited

Employee Housing and Estates

Sasini operates comprehensive estate communities housing its 4,000+ workforce and their families, providing:

• Staff housing for all estate workers
• Four primary schools with top regional performance
• Six day care centers in tea estates
• Medical centers with inpatient and outpatient facilities
• Social amenities including shops, barber shops, milling facilities, and staff clubs
• Quality living conditions supporting workforce productivity

Sustainability and ESG Initiatives

Sustainability is a cornerstone of Sasini PLC's business strategy, deeply integrated with the United Nations Sustainable Development Goals (SDGs). The company has embraced a comprehensive approach to environmental stewardship, social responsibility, and governance excellence.

SDG Alignment

Sasini focuses on nine specific UN Sustainable Development Goals:

SDG 1 - No Poverty: Economic empowerment through training 500 farmers annually in climate-smart agriculture and expanding living wage programs across all crop sectors.

SDG 3 - Good Health and Well-being: Provision of comprehensive healthcare through well-equipped medical centers on estates. The focus on health-beneficial crops (tea, coffee, avocado, macadamia) aligns with the mantra of 'nourishing our world.'

SDG 4 - Quality Education: Investment in education infrastructure with four primary schools on estates achieving top regional examination results, plus six day care centers for young children.

SDG 5 - Gender Equality: Ambitious target of 50/50 gender representation in leadership by 2026, with strengthened DEI-focused recruitment, training, and career progression programs.

SDG 7 - Affordable and Clean Energy: Significant investment in solar power with 1.5MW generation station providing 25-30% of factory power requirements.

SDG 8 - Decent Work and Economic Growth: Upholding living wage standards and ethical employment policies across all operations, providing employment for 4,000+ workers with comprehensive benefits.

SDG 9 - Industry, Innovation and Infrastructure: Implementation of advanced technologies including mechanized harvesting, drone applications, and modern processing facilities.

SDG 12 - Responsible Consumption and Production: Sustainable farming practices, waste reduction, and quality standards ensuring responsible production across all products.

SDG 15 - Life on Land: Commitment to planting 3 million trees by 2030, restoring riparian zones by 2025, and protecting biodiversity across estates.

Environmental Initiatives

Climate Action: Robust afforestation program with ambitious tree-planting targets. Implementation of climate-smart agricultural practices to enhance resilience and reduce emissions.

Water Management: Significant investments in clean water systems for employees and host communities. Riparian zone restoration to protect water resources.

Renewable Energy: Expansion of solar power infrastructure reducing carbon footprint and operational costs.

Sustainable Agriculture: Precision farming techniques, optimized input usage through drone technology, and intercropping strategies for long-term sustainability.

Social Responsibility

Workforce Development: Comprehensive employee education and professional development programs to enhance workforce skills and career advancement.

Health and Safety: Achieved 30% reduction in workplace incidents with improved wellness programs and community healthcare access.

Community Investment: Focus on quality education and healthcare for estate communities. Housing policy ensuring workers and families live in healthy conditions.

Fair Labor Practices: Living wage standards, ethical employment policies, and comprehensive benefits including housing, education, and healthcare.

Governance and Ethics

Ethical Governance: Strengthening anti-corruption frameworks, supply chain accountability, and ESG-driven risk management.

Strategic Partnerships: Collaboration with regulatory bodies including Tea Board of Kenya, Kenya Tea Growers Association, and Agriculture and Food Authority.

Transparency: Regular ESG reporting launched, with dedicated investor communications on sustainability initiatives.

Board Oversight: Experienced board with strong governance practices and alignment with Sameer Group standards.

ESG Performance Metrics

Recent ESG achievements include:

• 30% reduction in workplace incidents
• Progression toward 50/50 gender balance in leadership
• 25-30% reduction in grid electricity usage through solar
• Training hundreds of farmers in sustainable practices
• Top regional performance in estate schools

Leadership and Governance

Board of Directors

Sasini's Board of Directors brings diverse experience in finance, agriculture, marketing, and strategic management. The board provides oversight aligned with best corporate governance practices.

Dr. Steve Omenge Mainda, PhD - Independent Non-Executive Director and Chairman

Dr. Mainda holds a Doctorate (Honoris Causa) from the University of Eastern Africa, Master's Degree from Princeton University, and diplomas from Cambridge University and University of East Africa. He is an Associate of the Chartered Insurance Institute, London, and a Fellow of the Institute of Directors. Currently serves as Group Chairman of Housing Finance Group and Chairman of Continental Reinsurance Company. Sits on boards of several Eastern African companies. Previously served as Chairman of Insurance Regulatory Authority of Kenya and Insurance Advisory Board. Awarded Elder of the Order of the Burning Spear (EBS) by President Mwai Kibaki for distinguished service.

Mrs. Betty Koech - Independent Non-Executive Director

Holds MBA from Moi University, Bachelor of Commerce from University of Nairobi, and Postgraduate Diploma in Marketing from Chartered Institute of Marketing (UK). Certified Leadership Consultant, Trainer and Coach with John Maxwell Team (USA). Served as Sales and Marketing Director at G4S Kenya and Marketing Manager at Unilever Kenya. Member of Board of Directors at Sunshine Secondary Education Limited. Extensive experience in leadership, marketing, strategic management, sales, and coaching.

Executive Management

Mr. Martin Robert Ochieng' - Group Managing Director

Appointed March 1, 2019. Holds MBA in Strategic Marketing and Management from Oxford Brookes University, England, and First Class Honours Bachelor of Science from Moi University. Over 25 years of experience in international trade, business management, and leadership in industry-leading global organizations. Previous roles include Head of Marketing for Sub-Saharan Africa at Pfizer, Marketing and Strategy Director for Africa and Middle East at Tyco International, CEO at GHM South Africa, and MD at SGA Kenya. Under his leadership, Sasini transformed from a loss-making position in 2019 (KES 337M loss) to record profitability of KES 1.17 billion in 2022. Average management tenure: 6.7 years. Average board tenure: 13.2 years.

Mr. Martin Njibwakale - Managing Director, Kipkebe Limited

Appointed April 1, 2019. Holds MBA in Strategic Marketing and Management from Oxford Brookes University and First Class Honours Bachelor of Science from Moi University. Extensive knowledge in tea husbandry and improving industry efficiencies. Previously held senior management positions at The Sotik Tea Company Ltd, Sotik Highlands Tea Estate Ltd, and Arroket Estate. Former member of Tea Board of Kenya Board of Directors and currently National Vice Chairman of Kenya Tea Growers Association (KTGA).

Dr. Samuel Kanga Odalo, DBA - Group Financial Controller

Over 31 years of experience in Finance, Accounting, and Audit. Previously held senior finance and accounting positions in various agribusiness companies. Brings expertise in strategic leadership, business development, corporate management, audit and risk management, and financial planning.

Mr. James Muriithi Kieu - General Manager, Coffee Operations

Appointed February 2004. Over 27 years of experience managing coffee and tea estates and factories. Previously held senior positions within Neumann Kaffee Gruppe managing operations locally and internationally. Holds Diploma in Agricultural Engineering from Jomo Kenyatta University of Agriculture and Technology. Led successful diversification programs within the group.

Ms. Priscah [Surname] - Human Resources

Over 15 years of experience in Human Resource Management. Previously held senior HR management positions in agribusiness and manufacturing industries.

Ownership Structure

Major shareholders include:

Strategic Priorities

Sasini PLC has articulated clear strategic priorities to drive sustainable growth, enhance profitability, and create long-term value for stakeholders while maintaining commitment to environmental and social responsibility.

Operational Excellence and Efficiency

Cost Management: Implementation of comprehensive cost containment measures to address the significant cost inflation experienced in recent years. Focus on optimizing production costs while maintaining quality standards.

Automation and Mechanization: Continued investment in mechanized harvesting, processing automation, and technology-driven operations to improve productivity and reduce labor costs.

ERP Optimization: Leverage the newly implemented Sage X3 ERP system to enhance operational visibility, improve decision-making, and streamline processes across business units.

Product Diversification and Value Addition

Coffee Division Growth: Capitalize on favorable coffee market conditions and strong demand for premium Arabica coffee. The coffee division has emerged as a key profit driver.

Macadamia Expansion: Scale macadamia operations to capitalize on growing global demand and favorable pricing. Continue development of intercropped plantations for long-term supply sustainability.

Avocado Market Development: Expand avocado export operations, strengthen out-grower networks, and develop new market channels beyond current UK, Europe, and USA destinations.

Retail Brand Development: Grow domestic retail presence with branded tea and coffee products, capturing margin through direct consumer sales.

Strategic Divestment

Coffee Division Sale: The company has announced intentions to dispose of its KES 3.7 billion coffee division to boost shareholder value. This strategic move would allow focus on core operations while unlocking value from coffee assets.

Market Development and Geographic Expansion

Export Market Diversification: Expand presence in existing markets (UK, Europe, Middle East, USA, Asia) while developing new geographic markets to reduce concentration risk.

Direct Sales Growth: Increase proportion of direct sales to customers versus auction sales, improving margins and customer relationships.

Sustainability and ESG Leadership

Climate Resilience: Continue implementation of climate-smart agriculture practices to adapt to changing weather patterns and reduce environmental impact.

Tree Planting Initiative: Execute on commitment to plant 3 million trees by 2030 and complete riparian zone restoration by 2025.

Gender Equality: Achieve 50/50 gender representation in leadership by 2026 through focused recruitment, development, and promotion initiatives.

Renewable Energy: Expand solar and clean energy infrastructure to reduce carbon footprint and operational costs.

Financial Stability and Shareholder Returns

Profitability Recovery: Focus on returning to consistent profitability through revenue growth, cost management, and operational improvements.

Balance Sheet Strength: Maintain strong asset base while managing liabilities prudently to ensure financial flexibility.

Dividend Consistency: Resume and maintain consistent dividend payments to shareholders as profitability stabilizes.

Risk Management

Commodity Price Volatility: Manage exposure to tea and coffee price fluctuations through diversification, hedging strategies, and operational efficiency.

Weather and Climate Risk: Implement agricultural practices and infrastructure to minimize impact of adverse weather conditions.

Supply Chain Resilience: Address geopolitical risks affecting logistics, particularly relating to shipping routes and costs.

Market Access: Maintain certifications and quality standards to ensure continued access to premium export markets.

Innovation and Technology Adoption

Digital Agriculture: Continue adoption of precision agriculture techniques, data analytics, and technology-driven farming practices.

Processing Technology: Invest in modern processing equipment to improve efficiency, quality, and product consistency.

Supply Chain Digitization: Enhance traceability systems and supply chain visibility through technology integration.

Conclusion

Sasini PLC stands as a testament to resilience, innovation, and strategic vision in Kenya's agricultural sector. From its founding in 1952 as a single coffee estate to its current position as a diversified agribusiness leader, the company has consistently demonstrated the ability to adapt, evolve, and thrive through changing market conditions.

The company's 72-year history reflects a journey marked by strategic diversification, operational excellence, and unwavering commitment to quality. As one of the oldest companies listed on the Nairobi Securities Exchange since 1960, Sasini has played a significant role in Kenya's economic development while building a reputation for producing high-quality agricultural products for global markets.

Sasini's recent financial performance illustrates both the challenges and opportunities inherent in agricultural commodity businesses. While FY 2024 presented significant headwinds with cost pressures and market volatility resulting in losses, the strong recovery demonstrated in FY 2025 – returning to profitability with KES 188 million in profit after tax – showcases the company's operational resilience and the effectiveness of its diversification strategy. The exceptional performance of the coffee division, supported by favorable global pricing, demonstrates the value of Sasini's multi-crop approach to managing agricultural risks.

Looking ahead, Sasini is well-positioned to capitalize on several key trends and opportunities. The growing global demand for specialty coffee, premium tea, and health-focused products like avocados and macadamia nuts aligns perfectly with the company's product portfolio. The emphasis on sustainability and ethical sourcing in international markets favors Sasini's comprehensive ESG program and commitment to responsible agriculture. The company's investments in technology, including mechanized harvesting, drone applications, solar energy, and digital systems like the Sage X3 ERP, position it for improved efficiency and competitiveness.

Sasini's sustainability initiatives represent a genuine commitment to creating value beyond financial returns. The focus on nine UN Sustainable Development Goals, from poverty alleviation and quality education to climate action and gender equality, demonstrates that the company views its role as extending far beyond crop production. With over 4,000 employees and their families living on estates with comprehensive social infrastructure, Sasini functions as a significant community pillar, providing education, healthcare, and economic opportunity across rural Kenya.

The company's strategic priorities – operational excellence, product diversification, market expansion, sustainability leadership, and innovation adoption – provide a clear roadmap for future growth. The potential divestment of the coffee division, while significant, reflects management's willingness to make bold strategic decisions to unlock shareholder value and focus resources on highest-potential opportunities.

Under the leadership of Group Managing Director Martin Ochieng', who has successfully guided the company through turnaround and recovery since 2019, and supported by an experienced board and management team, Sasini possesses the human capital and strategic direction necessary for continued success. The company's goal of achieving 50/50 gender balance in leadership by 2026 reflects a progressive approach to talent management that strengthens organizational capability.

As Sasini pursues its vision of becoming the leading sustainable agribusiness in Africa, it does so with strong foundations: seven decades of operational experience, diversified revenue streams across four major crop categories, strategic geographic presence across Kenya's prime agricultural regions, established relationships in premium export markets, and a demonstrated commitment to environmental stewardship and social responsibility.

The path forward will not be without challenges. Agricultural businesses face inherent uncertainties from weather patterns, global commodity price volatility, geopolitical factors affecting logistics, and evolving regulatory environments. However, Sasini's track record of navigating adversity, combined with its strategic investments in technology, sustainability, and operational excellence, position the company to manage these risks effectively while capitalizing on growth opportunities.

For investors, Sasini offers exposure to multiple high-value agricultural commodities, a management team with proven turnaround capability, strong asset backing with KES 27+ billion in total assets, and a commitment to restoring consistent dividend payments as profitability stabilizes. For consumers globally, Sasini provides assurance of ethically produced, high-quality agricultural products that meet international standards while supporting sustainable development in Kenya.

In conclusion, Sasini PLC represents a compelling story of Kenyan agricultural excellence, combining traditional farming expertise with modern technology and sustainable practices. As the company continues its journey toward becoming Africa's leading sustainable agribusiness, it carries forward a rich heritage while embracing innovation, demonstrating that profitability and responsibility can advance together. With strategic clarity, operational capability, and unwavering commitment to its stakeholders and the environment, Sasini is well-equipped to write the next successful chapter in its distinguished history.