By Karakuta Fresh Produce Ltd, a Kenyan exporter of avocados and fresh organic herbs, said on Thursday it intends to list on the Nairobi Securities Exchange (NSE) by introduction, subject to regulatory approval, as part of a plan to widen its investor base and expand into new export markets.
The company said the planned Karakuta Fresh Produce NSE listing requires sign-off from both the NSE and Kenya’s Capital Markets Authority (CMA) before shares can begin trading.
Founder and Chief Executive Grace Ngungi said the listing would give retail and institutional investors, including smallholder avocado farmers, a stake in the company’s supply chain.
“It gives us the governance and transparency that public markets demand, and it positions Karakuta to draw on deeper capital as we scale production and expand into new export markets,” Ngungi said.
A listing by introduction allows a company to have its existing shares admitted to trading on an exchange without first raising new capital through a public offer.
Karakuta said the move would also improve corporate governance and give it future access to capital markets, without specifying an intended listing date or the proportion of shares to be admitted.
Synesis Capital is acting as lead transaction adviser on the listing, with MWC Legal as legal advisers and Bakertilly as reporting accountants.
Synesis Capital Director of Advisory Services Makopa Mwasaria said the listing would enhance the company’s visibility and give shareholders a transparent platform for price discovery and trading of shares.
Karakuta was established in 2018 in the Karakuta area of Juja, Kiambu County, and sources Hass and Fuerte avocados from more than 3,000 farmers in Kenya, Uganda and Tanzania, according to the company.
Njoki Karanja, an avocado farmer who supplies the company, said working with Karakuta had made pricing and demand more predictable. “Before Karakuta, we never knew who would buy our fruit or at what price each season. Now we have a reliable buyer who pays a fair, consistent price,” Karanja said.
The company operates a packhouse in Nairobi with capacity for 250 containers, which it said is one of 52 operational avocado packhouses in Kenya.
It has created 1,163 jobs across its sourcing network, packhouse and export operations since 2018, the company said, without providing independent verification of the figure.
On the herb side, Karakuta exports basil, oregano, thyme, tarragon, mint, rosemary, sage, coriander, lovage and chives, it said.
Ngungi said the company was also looking to increase its avocado supply to meet demand from existing customers in the European Union, the United Arab Emirates, Malaysia and India, and was targeting China as a new market.
Kenya is one of Africa’s largest avocado exporters, shipping fruit primarily to Europe and, more recently, to Asian and Middle Eastern markets.
Industry groups have said uneven grading and packing standards among smaller operators have at times weighed on the country’s competitiveness against exporters in Mexico, Peru and South Africa.
Karakuta commissioned its Nairobi packhouse, financed with support from Kenya’s Equity Group, to address those quality-control issues, according to earlier company statements. The facility uses grading and packing equipment supplied by Israeli firm Eshet Eilon.
The NSE has in recent periods sought to attract more listings from mid-sized Kenyan companies, including through its Small and Medium Enterprises Market Segment, which allows smaller firms to list with lighter compliance requirements than the main board.
Karakuta Fresh Produce describes itself as a vertically integrated agribusiness, from farming and sourcing through grading, packing and export.
