Sasini to Spend Sh70m in Marketing

Sasini Tea and Coffee Company will spend Sh70 million to promote its products locally and internationally.

A director with the company, Mr Naushud Merali said the firm had diversified its activities to include value addition in tea, coffee and milk. The money would go towards marketing operations and product development.

Speaking during the firm's annual general meeting at Kamundu Coffee Estate in Kiambu, Merali said the firm will take advantage of the recently established second window in coffee marketing to boost coffee sales.

Sasini is one of the companies that were licensed by the ministries of Agriculture and Co-operative Development to sell coffee through the special arrangement.

Shareholders approved a share split where shareholders who were on the list by February 14 will get five shares for every share.

"The capital Markets Authority granted approval on the ratio of five shares to one held," said Mr Peter Muthoka, the firm's managing director. "We expect the split to encourage more Kenyans to own the company by the way of investing on the stock."

The shareholders also approved the firm's change of name to Sasini in order to accommodate the new products under development.

Merali announced that the firm will venture into mineral water distribution in the next five years. During the year ending September, the company posted Sh82 million profit from a Sh38 million loss the previous year.

Turnover also rose to Sh1.3 billion from Sh931 million over the same period.

"The company expects to do better in future given the introduction and good reception by the market of the value added products in coffees and teas," said Muthoka.

He asked the Government to fund the promotion of tea exports in the international market.