Karakuta Fresh Produce, a Kenyan avocado exporter, is seeking to list on the Nairobi Securities Exchange (NSE) to unlock capital for expansion. The proposed listing, subject to approval by the NSE and the Capital Markets Authority (CMA), will enable the company to access deeper capital markets as it expands production and enters new export markets. Founder and chief executive Grace Ngungi said the listing would provide investors with an opportunity to participate in a vertically integrated agribusiness with infrastructure and export markets already in place.
Karakuta sources Hass and Fuerte avocados from more than 3,000 farmers across Kenya, Uganda, and Tanzania, giving the planned listing a direct link to thousands of small-scale growers who typically remain outside the formal capital markets. The company has built a sourcing network spanning the three East African countries and operates a Nairobi packhouse with a capacity to handle 250 containers and a high-precision avocado grading and packing line. This infrastructure enables Karakuta to supply customers in the European Union, United Arab Emirates, Malaysia, and India.
The proposed listing will also strengthen corporate governance, improve transparency, and provide a platform for future capital raising as Karakuta's funding requirements grow. Synesis Capital director of advisory services Makopa Mwasaria said the listing would enhance Karakuta's visibility while providing shareholders with a platform for price discovery and trading. The company has appointed Synesis Capital as lead transaction adviser, MWC Legal as legal adviser, and Baker Tilly as reporting accountants.
Karakuta was established in 2018 in Juja, Kiambu County, and has created 1,163 jobs across its sourcing network, packhouse, and export operations. One of the farmers supplying Karakuta, Njoki Karanja, said the company had provided a reliable market for her produce while supporting growers with technical assistance on pruning, spacing, and pest management. Before Karakuta, Ms. Karanja said they never knew who would buy their fruit or at what price each season.
The company exports fresh herbs, including basil, oregano, thyme, tarragon, mint, rosemary, sage, coriander, lovage, and chives, in addition to avocados. Karakuta is targeting China as its next growth market, expanding its customer base beyond the European Union, United Arab Emirates, Malaysia, and India. The release does not disclose Karakuta's proposed valuation, shareholding structure, financial performance, or the amount of capital it may seek to raise following the listing.
The NSE listing will give investors, including smallholder farmers, an opportunity to participate in the wider agricultural value chain. For farmers, the move could provide greater visibility of the value created beyond the farm gate. Karakuta has spent eight years building its operations, including packhouse, export channels, and market access. The company is among 52 operational packhouses in Kenya.
Karakuta's listing plans mark a significant milestone for the company, which has built a reputation for providing a reliable market for small-scale farmers. The listing will enable the company to access new capital to drive growth and expansion. Key stakeholders, including farmers and investors, will benefit from the increased transparency and visibility that come with a listing on the NSE.
Key points
- Karakuta Fresh Produce plans to list on the Nairobi Securities Exchange to unlock capital for avocado expansion.
- The proposed listing will strengthen corporate governance and improve transparency.
- Karakuta sources avocados from over 3,000 farmers across Kenya, Uganda, and Tanzania.
