TPS Eastern Africa Plc, the operator of Serena Hotels, posted a wider net loss of KSh 66.38 million for the six months ended 30 June 2026. That is a 315.5% increase from the KSh 15.97 million loss recorded in the same period last year.
A Serena Hotels property. The group reported a wider half-year loss as softer international demand and lower foreign-exchange gains weighed on results.
Revenue edged down 1.4% to KSh 4.00 billion from KSh 4.05 billion. Operating profit before depreciation and amortisation fell 4.2% to KSh 517.14 million. The board declared no interim dividend.
Key Financial Highlights
| Metric | H1 2026 | H1 2025 | Change |
|---|---|---|---|
| Revenue | KSh 4.00 billion | KSh 4.05 billion | -1.4% |
| Operating Profit (before D&A) | KSh 517.14 million | KSh 540.00 million | -4.2% |
| Net Loss | KSh 66.38 million | KSh 15.97 million | +315.5% |
| Loss Per Share | KSh 0.12 | KSh 0.05 | +140% |
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What Drove the Wider Loss
Company Secretary Dominic Ng’ang’a said the group faced softer international and corporate travel demand. Geopolitical tensions and travel advisories linked to an Ebola outbreak in parts of the region reduced high-yield bookings.
A sharp drop in non-cash foreign-exchange gains also weighed heavily. Last year’s strong gains of KSh 654 million shrank to just KSh 38 million as the Kenya Shilling strengthened against the US dollar.
Finance income fell after the company used cash reserves to fund property upgrades and reduce debt. The group invested KSh 271 million in renovations, including work at the Dar es Salaam Serena Hotel and the Lake Manyara Serena Safari Lodge conference centre. Higher depreciation from these upgrades further increased the loss.
Cash generated from operations dropped 41.8% to KSh 348.5 million.
Outlook for the Second Half
Management expects a stronger second half. The business normally makes most of its profit during the July–October peak safari and wildebeest migration season.
Forward bookings have improved. Demand for meetings, incentives, conferences and exhibitions (MICE) is rising. Better airline connectivity and the re-launch of the Serena Prestige Club loyalty programme are also expected to support recovery.
Recently completed refurbishments should begin contributing more fully to revenue in the coming months.
Read also:Kakuzi H1 2026 Profit Crashes 97.6% to KSh 10.4 Million
TPS Eastern Africa remains the only pure-play hospitality stock actively trading on the Nairobi Securities Exchange. The wider first-half loss reflects the seasonal nature of East African tourism and the impact of currency movements and non-cash charges rather than a collapse in core hotel operations.
Investors will now watch occupancy rates and average room rates through the peak season to see whether the second half can reverse the half-year deficit.
Sources
- Business Today – TPS East African Plc H1 Net Loss
- Kahawatungu – TPS Eastern Africa Loss Widens
- Company statement via Company Secretary Dominic Ng’ang’a and concurrent market reports, 25–26 August 2026