Sasini sells avocado processing plant after Red Sea crisis slashes exports
At the virtual AGM in March 2026, Group Managing Director Martin Ochieng told shareholders that the fruit export business had been the most severely affected segment.
KENYA – Sasini PLC has invited sealed tenders for the sale of its avocado processing and packing plant in Nairobi, marking a strategic retreat from the vertically integrated fruit export model the listed agribusiness has built over the past decade.
The decision follows severe disruptions to Red Sea shipping routes. Sasini shipped only 22 containers of avocados in FY2025, down sharply from 71 containers in FY2024, after Houthi attacks effectively closed the Suez Canal to commercial traffic.
Vessels rerouted via the Cape of Good Hope faced nearly double the transit time and significantly higher logistics costs, eroding the competitiveness of Sasini’s produce in its primary European and United States markets.
The avocado unit recorded losses in the financial year ended September 2025, alongside headwinds in tea and macadamia, even as the group returned to overall profitability on the back of exceptional coffee performance.
Additionally, group revenue for FY2025 rose 22.5% to KES 8.44 billion, but cost of sales climbed 17.9% to KES 7.43 billion, reflecting sustained pressure from logistics costs and macroeconomic conditions.
At the virtual AGM in March 2026, Group Managing Director Martin Ochieng told shareholders that the fruit export business had been the most severely affected segment.
He pointed to the continued closure of the Strait of Hormuz and the Bab el-Mandeb Strait as the key constraint, and said Sasini was accelerating diversification into Asian markets, with China and India identified as priority destinations.
The facility, operated through the subsidiary Sasini Avocado EPZ Limited at Sameer Industrial Park, was commissioned in 2021 and houses a four-lane Eshet Eilon packing line processing up to 8 tonnes per hour, alongside cold storage capable of staging 4 export containers simultaneously.
For potential investors, the facility offers strategic advantages. It sits within Sameer Industrial Park, Kenya’s premier Export Processing Zone, which offers income tax holidays for the first ten years and exemptions on import duties and VAT on qualifying inputs.
Therefore, any acquirer operating it as a going concern would inherit those incentives, subject to EPZA approval, along with certifications under Global G.A.P., SMETA, and KEPHIS standards. Bids close at 5:00 PM on 8 May 2026.
The sale illustrates how Red Sea logistics disruptions are forcing major agricultural players to restructure assets and geographic priorities, with Sasini’s pivot to Asian markets signalling a broader realignment in African agribusiness.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
