Kakuzi In Trouble After Two More Europeans Firms Cut Orders

By Getrude Matayo

The Local agriculture cultivation and manufacture company Kakuzi PLC has been facing human rights abuse allegations between 2009 and 2020.

Due to the claims that it has been facing, this week, two more large European supermarket chains, Sainsbury’s and Lidl, suspended supplies by the Murang’a-based agricultural firm.

According to Business Daily, UK’s and Germany’s discount Lidl confirmed that they have suspended any dealings with Kakuzi pending investigations into the allegations.

The share price of listed agriculture company Kakuzi has so far dropped from 385 to 380 shillings as investors exit following bad publicity.

The allegations, dating from 2009 to January this year, including battering a 28-year-old man to death for allegedly stealing avocados, the rape of 10 women, and attacks on villagers walking on paths through Kakuzi land.

NSE data shows that the firm’s share price which hit a year low of Sh300 in April but gained steadily to Sh390 in July on relaxed Covid-19 global containment measures is back on a downward trend.

Separately, Lidl said it has frozen orders from suppliers by Kakuzi until the claims of rights abuse ate investigated.

Lidl said that they have temporarily suspended supply from this business whilst an investigation takes place.

According to Lidl GB, they operate with a fundamental respect for the right of the people they interact with, whether they be their own direct employees, contract workers, or people employed throughout their supply chains. They are also opposed to all forms of labor exploitation

The exiting of Sainsbury’s and Lidl came barely a week after Britain’s largest supermarket, Tesco temporarily dropped Kakuzi as its supplier of avocados pending investigation.

Tesco said that any form of human rights in their supply chain is unacceptable. They have been working closely with the ETI alongside other ETI members to investigate this issue and ensure measures have been taken to protect workers.

The company’s share price hit a year high of 423.50 in November last year on high demand for macadamia in the global.

Among the allegations lodged in part by former Kakuzi employees, the company’s security guards have been accused of violations including killings, rape, attacks, and false imprisonments.

The company operates a 54 square mile plantation in Murang’a county, employed an estimated 3000 persons, and is a major grower of avocados, macadamia nuts, and pineapples.

The Murang’a based agricultural firm is the second oldest at NSE, having been listed in 1951, a year after Car and General.

The position taken by its key produce buyers is likely to be felt by avocado farmers in the country, especially in the central region.