Sasini cancels US$61.1M sale of Kiambu coffee estate
Sasini has terminated the planned sale of its Gulmarg coffee estate after the buyer failed to meet obligations, returning the asset to operational use.
KENYA – Agricultural firm Sasini Plc has cancelled the planned sale of its Gulmarg coffee estate in Kiambu County for Kes 7.9 billion (US$61.1M) after the prospective buyer failed to meet key contractual obligations, bringing the transaction to an abrupt end.
The Nairobi Securities Exchange-listed company confirmed that the sale of the Gulmarg Division in Mweiga Estates Limited has been terminated and the asset will no longer be classified as held for sale in its financial statements.
“We also wish to notify all stakeholders that the sale transaction in respect of Gulmarg Estate, previously classified as an asset held for sale, has been formally terminated,” the company said in a statement accompanying its half-year results for the period ended March.
“The termination arose because of the purchaser’s failure to fulfil key contractual obligations by the stipulated due dates. The Gulmarg Estate will accordingly revert to operational use and will no longer be classified as an asset held for sale in the company’s financial statements.”
Sasini had initially agreed on September 17, 2025, to sell the Gulmarg Division in Mweiga Estates Ltd, which carries a book value of Kes 3.7 billion. The asset had been reclassified as a current asset held for sale ahead of the planned transaction, which was expected to generate significant capital gains for the company.
The firm has in recent years pursued a strategy of disposing non-core assets, including its former Nairobi Loita Street property, sold for over Kes 600 million (US$4.64M) in 2015, and 513.7 acres of leasehold land in Nyeri, which fetched Kes 1 billion (US$7.73M) in the same year. The Nyeri land previously hosted coffee estates that were running at a loss.
Despite fluctuations in profitability, the Gulmarg Division had posted a net profit of Kes 10.6 million (US$81.9K) in the year ended September 2025, compared to a loss of Kes 6.3 million (US$48.7K) the previous year, supported by improved plantation valuations.
Sasini’s broader financial performance continues to reflect volatility in agricultural commodity cycles. In the six months to March, the company reported a net loss of Kes 170.8 million (US$1.32M), widening from Kes 113 million (US$873.5K) a year earlier, even as sales rose slightly to Kes 3.01 billion (US$23.24M) from Kes 2.96 billion (US$22.88M).
The company attributed its performance to challenging operating conditions, including adverse weather patterns, geopolitical tensions, and rising logistics costs linked to global trade disruptions. It noted that while coffee remained resilient due to strong pricing, the tea segment faced pressure from global oversupply and weak auction prices at Mombasa.
Sasini has also been exploring new export markets for its avocados and macadamia nuts in Asia, particularly China and India, as shifting global trade routes and rising shipping costs continue to affect competitiveness in Europe and the United States.
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