Agribusiness firm Sasini is preparing to offload a coffee estate in Kiambu County for Sh7.9 billion, a deal poised to deliver a hefty capital gain.
The Nairobi Securities Exchange-listed company revealed in its latest annual report that it has agreed to dispose of the Gulmarg Division under Mweiga Estates Limited. The asset is currently carried in its books at Sh3.7 billion, meaning the sale price represents a significant uplift. Sasini said the transaction, agreed on September 17, 2025, has led to the unit’s results being classified as discontinued operations, with the related assets reclassified as held for sale.
At Sh7.9 billion, the agreed price comfortably exceeds Sasini’s market valuation of about Sh4.6 billion, underscoring the persistent discount at which several agricultural counters trade on the NSE relative to their land holdings.
Although land values have steadily appreciated, agricultural firms often post volatile earnings, swinging between profits and losses depending on global commodity cycles for crops such as coffee, tea and macadamia. That unpredictability has made their performance among the most erratic on the bourse.
Sasini noted that it had not yet received payment by the time the annual report was published. It added that no liabilities are attached to the disposal, meaning nearly the entire proceeds should flow directly to the company. The sale adds to a string of divestments over the years, as the firm has shed non-core assets and underperforming divisions.
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The Gulmarg unit recorded a net profit of Sh10.6 million in the year to September, reversing a Sh6.3 million loss the previous year, largely due to an increase in plantation values. Past disposals include its former Loita Street building in Nairobi, sold for over Sh600 million in 2015, and 513.7 acres of leasehold land in Nyeri for Sh1 billion the same year. The Nyeri properties, which hosted two coffee estates, had reportedly been loss-making for years.
Within the broader group, coffee trading delivered the strongest performance in the year to September 2025, generating a net profit of Sh237.2 million. That helped offset losses in avocado and macadamia operations, bringing total group earnings to Sh177.3 million. Sasini said its coffee trading arm achieved record profits, buoyed by exceptional price realisations at the Nairobi Coffee Exchange, which averaged $6.19 per kilogramme compared with $4.65 a year earlier, despite lower production volumes caused by adverse weather.
