Bonus is expected to motivate growers to accelerate production

Kenyan agribusiness firm rolls out bonus to smallholder avocado farms

Kakuzi Plc, a Kenyan agribusiness firm, has rolled out Sh. 31 million to hundreds of smallholder avocado farmers in Murang’a County. The farmers, who are part of the firm’s 3,500 strong smallholder program, have begun to receive the cash payout in order to continue planting Hass avocados.

According to Kakuzi Managing Director Chris Flowers, the Hass variety was encouraged due to its popularity and ability to attract reasonable prices in the international market. He noted that the cash payout would act as a motivator for farmers in the area to accelerate production so as to benefit from the risks and rewards found in the international markets.

“Ahead of the Christmas festivities, Kakuzi confirms that we have commenced bonus payments to our avocado smallholder farmers. The total Payment to smallholders and out-growers this season is Sh.31.4 million, and this represents 87 percent of net returns,” Flowers said.

He added that through their smallholder program, small-scale avocado growers are given access to best practices, are able to get back the full value of their products, and traceability is managed. “Kakuzi has a large international market and wants smallholder farmers to access it. Therefore, we have upscaled the operations of our smallholder avocado farmers’ program while boosting the global positioning of Kenyan avocados,” he added.

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