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Sasini sells coffee estate in Kiambu for Sh7.9 billion
Sasini Plc Chairman James Boyd McFie delivers remarks during ICEA LION Asset Management’s 40th anniversary celebration at Radisson Blu Hotel, Nairobi, on December 3, 2025.
Agricultural firm Sasini is set to sell a coffee estate in Kiambu County for Sh7.9 billion in a transaction that is expected to result in a substantial profit in the form of capital gains.
The Nairobi Securities Exchange-listed firm has disclosed the ongoing disposal of the property, which has a carrying value of Sh3.7 billion, in its latest annual report.
“On 17 September 2025 the group agreed to sell the Gulmarg Division in Mweiga Estates Limited. For this reason, the results of the operations have been disclosed as discontinued operations and the assets classified as current assets held for sale,” Sasini said in the report.
At Sh7.9 billion, the value of the transaction dwarfs Sasini’s market capitalisation of Sh4.6 billion as of Friday. This demonstrates that the company is trading at a fraction of its assets, a discount that has been seen in other agricultural firms listed on the NSE.
While the value of the land held by the companies continues to grow, the firms keep swinging from profits to losses in line with cycles in the commodities they grow and sell including coffee, tea and macadamia.
This has seen them post record earnings and dividends and also losses and dividend droughts, making their financial performance among the most erratic on the NSE.
Sasini says it had not received payment for the property as of the time of the release of the annual report. The company added that there are no liabilities related to the disposal of the asset, meaning it will bank nearly all of the sales proceeds.
The pending transaction is the latest asset sale by Sasini which has over the years disposed of divisions and non-core properties.
The operations it is selling now had a net profit of Sh10.6 million in the year ended September, helped by growth in the value of its plantations.
The division had posted a net loss of Sh6.3 million the year before. Other assets that Sasini has sold previously include its former building on Nairobi’s Loita Street, which it disposed of for more than Sh600 million in 2015.
In the same year, it sold 513.7 acres of its leasehold land in Nyeri for Sh1 billion. The land housed its two coffee estates in Nyeri, which it said had been running losses for years.
Coffee trading
The coffee business, which has underperformed in recent years, had the largest net profit of Sh237.2 million in the year ended September 2025 while Avocado and macadamia made losses to weigh down the group’s earnings which stood at Sh177.3 million.
“The coffee trading unit was the standout performer, achieving its highest ever profits,” said Sasini.
“Despite a decline in the production volumes in coffee estates due to adverse weather, price realisations at the Nairobi Coffee Exchange were exceptional, averaging $6.19 per kilogramme [compared to $4.65 per kilogramme in 2024].”
