Nairobi Securities Exchange‑listed agricultural firm Sasini has announced plans to sell its Gulmarg Division in Kiambu County for Sh7.9 billion (US$51 million).
The transaction, disclosed in the company’s latest annual report, is expected to generate capital gains given the property’s carrying value of Sh3.7 billion (US$23.9 million).
“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 stated in its report.
At Sh7.9 billion, the agreed sale price significantly exceeds Sasini’s market capitalisation of Sh4.6 billion (US$29.7 million) as of Friday, underscoring how listed agricultural firms often trade below the value of their underlying land and biological assets.
Payment and Liabilities
Sasini confirmed it had not yet received payment for the property at the time of the report’s release. The company added that there are no liabilities attached to the disposal, meaning it expects to retain nearly the full proceeds once the transaction is completed.
Part of a Broader Restructuring Strategy
The sale continues Sasini’s long‑running portfolio reshaping strategy, which has seen the company divest non‑core or underperforming assets. Notable past disposals include:
- Its former office building on Nairobi’s Loita Street, sold for more than Sh600 million (US$3.9 million) in 2015.
- 513.7 acres of leasehold land in Nyeri, sold for Sh1 billion (US$6.5 million) the same year, which housed two loss‑making coffee estates.
Performance of the Unit Being Sold
The Gulmarg Division recorded a net profit of Sh10.6 million (US$68,000) in the year ended September 2025, a turnaround from a net loss of Sh6.3 million (US$41,000) the previous year. The improvement was supported by growth in the value of its plantations.
Coffee Trading Emerges as Strongest Performer
Despite challenges in avocado and macadamia operations, Sasini’s coffee business emerged as the strongest performer in 2025. The unit posted a record net profit of Sh237.2 million (US$1.5 million). Overall group earnings stood at Sh177.3 million (US$1.1 million), weighed down by losses in other segments.
“The coffee trading unit was the standout performer, achieving its highest ever profits,” Sasini noted.
“Despite a decline in production volumes in coffee estates due to adverse weather, price realisations at the Nairobi Coffee Exchange were exceptional, averaging US$6.19 per kilogramme compared to US$4.65 per kilogramme in 2024.”
Strategic Implications
The disposal of the Gulmarg Division represents both a balance‑sheet event unlocking embedded land value and a strategic pivot point for Sasini. With proceeds expected to be available for reinvestment, debt reduction, or shareholder returns, investors will closely watch how management redeploys the windfall in a sector where commodity cycles can quickly swing performance and dividend capacity.
