Cautionary Announcement

Kakuzi Ld
16 April 2007



                                 KAKUZI LIMITED



                            CAUTIONARY ANNOUNCEMENT



                   Proposed Sale of Siret Tea Company Limited



The Directors of Kakuzi Limited ('Kakuzi') wish to advise its shareholders and
the public that Kakuzi is in negotiations which may lead in due course to the
sale of the Siret Tea Estate and Factory.  The proposed transaction is subject
to the obtaining of all necessary regulatory approvals and exemptions, including
the approval of the shareholders of Kakuzi at the Annual General Meeting to be
held on 22nd May 2007. The proposals are summarized below:



1.         Siret Tea Estate and Factory and its associated business will be
transferred to Kakuzi's dormant subsidiary Siret Tea Company Limited.



2.         The acquisition of the shares in Siret Tea Company Limited (the '
Siret Shares') will be undertaken by EPK Outgrowers Empowerment Project Company
Limited (the 'Empowerment Company'), a company mainly owned by smallholders.



3.         The Siret Shares will be sold over a period of up to 7 years to the
Empowerment Company.



4.         It is expected that the Empowerment Company will purchase not less
than 10% of the Siret Shares in 2007 and a minimum of 7.5% of the Siret Shares
in each year thereafter until the Empowerment Company has acquired 49.5% of the
Siret Shares.



5.         Once the Empowerment Company has acquired 49.5% of the Siret Shares,
it will have the option to acquire the remainder of the Siret Shares as one lot.



This development may have a material effect on the value of the shares of
Kakuzi.  Accordingly, shareholders are advised to exercise caution when dealing
in the shares until a further announcement is made.





G H Mclean

Group Managing Director

Nairobi

11th April 2007




                      This information is provided by RNS
            The company news service from the London Stock Exchange