Kakuzi PLC has entered a deal with it’s workers to get a nine percent salary increment this year and a nine percent hike next year as well.
The signed collective bargaining agreement (CBA) between the agricultural firm and the Kenya Plantation and Agricultural Workers Union (KPAWU) was announced on Thursday, December 1.
In a statement, Kakuzi CEO Chris Flowers said the pay hikes were effective last month.
“As part of the agreement with KPAWU, the firm will backdate the due payments to January this year. The company will load the other nine percent increase onto the Kakuzi unionisable staff salaries in January next year,” he said.
The salary increment increased the company’s payroll costs to Ksh 920.2 million from Ksh 810.8 last year.
Kakuzi has 3,662 employees in the year ended December 2021, with most of them on short-term contract.
In August, the firm posted a Ksh 341.3 million half-year net profit, a 75 per cent growth from Ksh 194.6 million posted within the same period last year.
The impressive performance was attributed to increased sales of the firm’s avocado and macadamia crops.
The same was also attributed to the steadily growing revenues from its market and product diversification efforts.
The firm’s total sales grew to Ksh 1.02 billion, up from Ksh 888.95 million booked within the same period last year.
Flowers disclosed that the early season avocado prices on the international market had opened poorly but continued to recover at the close of the six months.
“Having fruit in the market for as many months of the year as possible has helped shield us from the poor early season market. In addition, entry into China is vital for Kenya
“Market prices may be similar to European levels, but such a high volume additional market gives us a choice and diversified sales options,” he said.
Kakuzi also announced plans to venture into the international blueberry export market after signing a partnership with berries marketing firm Driscoll’s.
