Kathy & Ray Horticultures Limited, founded in 2017 and based in Kenya, specializes in the production of unrefined cold-pressed avocado oil for export. Originally a pre-export avocado handling facility, the company shifted to oil production in 2018 and now operates an integrated processing plant located near Kenya’s avocado-growing regions. It supplies B2B clients in the food sector, including bulk traders, private-label manufacturers, and natural product distributors. The company controls the entire value chain from sourcing to packaging, with two lines capable of continuous output.

Ownership and leadership

The company is fully owned and directed by Nyongesa Bramwel Ndombi, whose operational expertise in oil processing, logistics, and plant management has driven the company’s growth and its ability to maintain consistent export relationships. His direct management ensures alignment between daily operations and strategic goals.

Financial Performance

General overview

Between 2021 and 2024, Kathy & Ray Horticultures Limited demonstrated consistent revenue growth and profitability, maintaining stable margins and avoiding external debt. Retained earnings rose significantly, creating a strong capital base for the company’s 2025–2026 expansion. This historical performance confirms the company’s financial discipline and operational viability.

Historical financial performance (2021–2024)

Year	Revenue (€)	Gross Profit (€)	Operating Profit (€)	CAPEX (€)	Net Profit (€)	Retained Earnings (€)
2021	921,441.66	329,029.63	258,611.85	17,520.48	164,582.54	160,727.59
2022	873,361.29	311,501.58	241,125.51	19,374.80	150,993.32	276,720.91
2023	990,525.44	374,730.38	299,886.15	27,364.98	186,386.94	391,107.85
2024	1,113,401.06	493,208.03	413,050.16	18,724.24	271,147.58	662,255.43

Kathy & Ray Horticultures Limited maintained upward financial momentum, with gross profit increasing nearly 50% across the period. CAPEX remained moderate and self-financed. The company entered 2025 with a debt-free balance sheet and strong reserves.

Forecasted financial performance (2025–2026)

Metric	2025 (€)	2026 (€)
Total Revenue	1,131,127.10	2,384,717.59
- Unrefined Oil	1,131,127.10	1,120,000.00
- Refined Oil	–	1,258,717.59
Total Gross Profit	503,133.13	1,025,386.30
- Unrefined Oil	503,133.13	465,318.30
- Refined Oil	–	554,068.00
Operating Profit	422,855.26	873,349.25
Financial Cost	71,125.00	867,875.00
- Interest Only	67,125.00	111,875.00
- Principal Repayment	–	750,000.00
Net Profit	246,211.18	3,831.98

The 2025 forecast shows healthy profitability from ongoing operations. In 2026, revenue nearly doubles due to refined oil sales, but net profit is temporarily compressed by a lump-sum debt repayment. Operationally, the company remains cash-flow positive.

Financial obligations and repayment capacity

Loan-related costs are fully incorporated into projections. Interest is paid monthly; principal is repaid in full at the end of each tranche. The projected 2026 operating profit of €873,349.25 sufficiently covers the €867,875.00 in total financial costs.

Financial strengths

Strong track record of profitability and internal reinvestment.
Zero debt exposure prior to 2025.
Loan structure aligned with operating cash flow.
Forecasted profits exceed repayment obligations.

Financial risks

Net profit in 2026 temporarily impacted by loan repayment.
Growth assumptions depend on timely production ramp-up.

Conclusion

Kathy & Ray Horticultures Limited has built a stable financial base and maintained profitability through disciplined capital use. The short-term dip in 2026 profit is expected and linked to debt servicing. Long-term financial viability remains strong, with forecasted operations supporting full repayment and further scaling.

Risk scoring

Collateral
Company Assets
Total risk score
A
Debt to equity
0.61
LTV
48 %
Credit history
8/10

Details

Growth Plan of Kathy & Ray Horticultures Limited

Strategic direction

Kathy & Ray Horticultures Limited is expanding its operations through the construction of a refined avocado oil facility with a capacity of 8-10 tons of fresh avocado per day. Located near Nairobi, the factory will integrate the full refining process and enable the company to diversify beyond unrefined oil. Once operational, it is expected to produce 1,100-1,700 liters of refined oil daily.

Commercial foundation

The company has secured advance commercial interest covering 109,280 kg of refined avocado oil annually from clients including Gustav Heess GmbH & Co. KG, Aperoliva S.L., Chosen Foods LLC, and AMD Special Oil LLC. Letters of intent have also been signed with additional B2B buyers across Europe, the US, and the Middle East.

Economic rationale

The refinery is designed to enhance yield and reduce input costs:

Raw avocado input: €0.38/kg
Oil yield: 17%
Processing loss: 2.5%
Average selling price: €7.00/kg

These metrics support a high-margin, export-oriented product line.

Human capital expansion

The project includes hiring over 30 staff across production, logistics, administration, and quality control to support autonomous plant operations.

Investment and financing

The total project cost is €1,641,200, distributed as:

Equipment and delivery: €932,000
Land, construction, design, installation: €530,000
Training and reserve: €179,200

Financing structure:

€750,000 – external loan
€650,000 – retained earnings
€250,000 – founder capital contribution

A €182,000 down payment has already been made to the supplier, Myande Group Co., Ltd., and equipment production is underway.

Strengths and risks

Strengths

Validated B2B demand for refined oil.
Strong yield economics and cost structure.
Fully defined funding plan and execution underway.

Risks

Execution timing for installation and commissioning.
FX and export logistics volatility.
Temporary margin compression from debt servicing.

Conclusion

The growth initiative is backed by client commitments, proven economics, and an active implementation timeline. It will reposition Kathy & Ray Horticultures Limited as a dual-line producer with higher value capture and improved export competitiveness.

Description of the Loan

Loan structure

Kathy & Ray Horticultures Limited is requesting a €750,000 loan to support the procurement of processing equipment for its new avocado oil refinery. The equipment cost totals €932,000, of which €182,000 has already been paid to supplier Myande Group Co., Ltd. The loan will be disbursed in three equal tranches of €250,000.

Use of proceeds

Tranche	Amount (€)	Purpose
1st	250,000	Payment for first batch of equipment
2nd	250,000	Payment for second batch of equipment
3rd	250,000	Final batch payment and installation coverage

This phased structure ensures alignment with the supplier’s delivery schedule and avoids excess liquidity buildup.

Strategic rationale

The loan enables Kathy & Ray Horticultures Limited to operationalize its entry into refined avocado oil production – expanding its product portfolio, boosting margins, and meeting confirmed demand from international buyers. Without the loan, the company would face delayed execution and potential disruption to contractual obligations.

Risk considerations

Key risks: Loan disbursement delays, FX fluctuations, and revenue timing mismatches.
Mitigation: Secured equipment contracts, phased revenue projections, and sufficient retained earnings for buffer capacity.

Conclusion

The €750,000 loan is operationally justified and financially structured to support timely project execution. It complements internal equity and will allow the company to scale output while maintaining liquidity discipline.

Loan Collateral

To secure the €750,000 loan, Kathy & Ray Horticultures Limited offers a diversified collateral package including existing equipment, cash reserves, newly acquired fixed assets, and a personal vehicle pledged by the company’s founder. The total adjusted collateral value exceeds €1.56 million, representing more than 200% coverage of the requested loan amount.

Collateral components

Existing production and logistics equipment: €422,871.29
Frozen cash reserve: €100,000.00
Founder’s pledged vehicle: Toyota Land Cruiser Prado (2018), valued at €49,120.28
Land and industrial facility (after 30% discount): €336,000.00
New processing equipment (after 30% discount): €652,400.00

Assessment

All pledged assets are unencumbered and possess resale value in the event of default. The inclusion of high-value industrial equipment and real estate, alongside liquid reserves and personal collateral, ensures tangible fallback value for the lender.

Conclusion

The company’s collateral strategy is comprehensive and risk-mitigating. The total pledged value provides more than full coverage of the loan principal, making the financial structure robust and secure for external financing.

Key facts

Kathy & Ray Horticultures Limited was founded
Aug 02, 2017
Start of active work/production
Aug 02, 2017
Revenue in 2023
€990,525.44
Net Profit in 2023
€186,386.94
Revenue in 2024
€1,113,401.06
Net Profit in 2024
€271,147.58

Borrower info

Kathy & Ray Horticultures Limited

Market description & size

Global market overview

The global vegetable oil market was valued at €257 billion in 2023 and is expected to exceed €340 billion by 2030. Specialty oils like avocado are gaining market share, especially among health-conscious consumers in developed regions. Cold-pressed and unrefined oils form a high-margin segment within this broader industry.

Avocado oil market

Valued at approximately €510 million in 2023, the global avocado oil market is projected to reach €810–875 million by 2030. Growth is driven by demand for clean-label oils used in premium food products, personal care, and wellness applications. The US and Europe lead global consumption, while Asia-Pacific markets show emerging demand. B2B buyers in food manufacturing, cosmetics, and nutraceuticals dominate end-use.

Consumption trends

Annual global consumption of avocado oil exceeded 95,000 metric tons in 2023, with the US accounting for around 35%. Industrial buyers prefer bulk formats, while retail remains niche. Around 70% of usage is food-related, followed by cosmetics and nutraceuticals.

Kenya’s role and the company’s positioning

Kenya is a growing avocado oil exporter, benefiting from year-round harvests, low labor costs, and geographic proximity to Europe and the Middle East. Kathy & Ray Horticultures Limited exports exclusively under a B2B model, serving distributors and processors in high-value markets.

Key export clients include:

Germany: HephaistusY GmbH, Gustav Heess GmbH & Co. KG, SanaBio GmbH, All Organic Treasures GmbH, Henry Lamotte Oils GmbH, Delphi Organic GmbH
Netherlands: Maya Gold Trading B.V., Koas Foods B.V., Eosta B.V.
Italy: Aperoliva S.L.
Poland: Natural Poland Sp. z o.o.
USA: Chosen Foods LLC, AMD Special Oil LLC, Cibaria International Inc.
Israel: S.M. Natural Ingredients Ltd.
UAE: Alfa Trading House DMCC, Al Saniya Foodstuff Trading LLC

Conclusion

Kathy & Ray Horticultures Limited is well-positioned within a high-growth, premium product segment. Its B2B focus, strong client base, and geographic advantages offer clear expansion potential. However, continued competitiveness will depend on managing logistics challenges and infrastructure investment.