East Africa Breweries Limited (EABL) is targeting to increase the number of smallholder farmers contracted under its sorghum farming program from the current 40,000.
EABL Group Chief Executive Officer Jane Karuku says contract farming is part of the firm’s strategy to lower cost of production through reduced imports.
Speaking at the investor briefing held on Friday, Karuku said in the half year period to December 31, 2024, the brewer realized a 20pc increase net profit to Ksh 8.1 billion.
The brewer attributes the profit growth to lower inflation, borrowing costs and higher sales. This is despite challenges such as high cost of material inputs and illicit trade.
Under the contract farming expansion plans, EABL says it is working with the Kenya Agriculture and Livestock Research Organization (KALRO) to enhance distribution of quality sorghum seeds to smallholder farmers.
Contract farming is part of East Africa Breweries strategy to increase support to the economy and reduce production cost by lowering raw material imports.
EABL board has proposed an interim dividend pay-out of Ksh 2,50 per share, which is more than double of ksh 1 per share that shareholders pocketed during a similar period last year.
