Sameer Africa Group Plc reported a 19.9% increase in half-year net profit to KSh 103.89 million for the period ended 30 June 2026, up from KSh 86.67 million in the same period of 2025. The growth comes as the company continues its full transition from tyre manufacturing to a pure commercial real estate and rental business.
Sameer Africa Business Park on Mombasa Road. The company posted stronger half-year profits as its real estate model delivers higher margins and cash generation.
Profit before tax rose 18.6% to KSh 142.19 million, while operating profit increased 19.0% to KSh 130.09 million. The results show clear progress in cost control and cash generation even as revenue declined slightly.
H1 2026 Financial Highlights
| Metric | H1 2026 | YoY Change |
|---|---|---|
| Profit After Tax | KSh 103.89 million | +19.9% |
| Profit Before Tax | KSh 142.19 million | +18.6% |
| Operating Profit | KSh 130.09 million | +19.0% |
| Revenue | KSh 205.75 million | -6.6% |
| Operating Expenses | KSh 83.33 million | -25.9% |
| Cash from Operations | KSh 178.92 million | +121.6% |
| Closing Cash | KSh 265.63 million | +265.5% |
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Despite the drop in revenue, Sameer Africa cut operating expenses by nearly 26%. This sharp reduction in costs more than compensated for the softer top line and delivered stronger profits and much healthier cash flows.
Total assets rose 15.1% to KSh 1.83 billion, while shareholders’ equity jumped 35.1% to KSh 1.12 billion. Total liabilities declined 6.8%. The balance sheet is clearly strengthening under the pure real estate model.
Strategic Shift to Real Estate Continues
Sameer Africa fully exited the competitive tyre business and now operates as an industrial landlord. Its portfolio includes more than 750,000 square feet of lettable industrial space at Sameer Business Park and related facilities along Mombasa Road, serving over 40 tenants across distribution, manufacturing, agro-processing and logistics.
The rental model delivers high operating margins and predictable multi-year cash flows. Occupancy remains strong, and the company benefits from contractual rent escalations built into most leases.
Land Sale Update
The long-delayed sale of 3.75 acres of undeveloped land along Mombasa Road, valued at KSh 919.70 million, has been extended once again to December 2026. The transaction was first agreed in 2022. The purchaser has already paid a significant deposit, and the outstanding balance is earning interest for Sameer Africa.
Completion of this sale would eliminate the remaining retained earnings deficit and position the company to consider dividends for the first time since 2014. The board declared no interim dividend for H1 2026.
Share Price and Investor Context
Sameer Africa shares have performed strongly on the Nairobi Securities Exchange as the market has recognised the successful pivot to real estate. The stock has risen significantly over the past year and now trades at a market capitalisation of around KSh 5 billion.
Investors are watching two main catalysts: continued growth in rental income and cash generation, and the eventual closing of the Mombasa Road land sale. Analysts note that the company now trades at a premium valuation relative to some pure real estate peers, reflecting expectations of future asset monetisation and potential dividend resumption.
Also read:Kenya Re H1 2026 Profit Jumps 42.8% to KSh 2.25 Billion on Strong Underwriting Recovery
What This Means for Investors and the Market
Sameer Africa’s H1 2026 results confirm that the transformation from a loss-making tyre manufacturer into a cash-generative industrial landlord is delivering tangible results. Higher margins, stronger cash flow and a cleaner balance sheet are the clearest signs of progress.
For long-term investors, the key metrics to monitor are rental income growth, occupancy levels, cash conversion and the eventual land sale proceeds. The delayed but still active land transaction remains the main near-term catalyst that could unlock dividends and further re-rate the stock.
Overall, Sameer Africa continues to demonstrate that its strategic pivot is working. The half-year numbers show a leaner, more profitable and more liquid company focused entirely on industrial real estate.
Sources
- Business Today – Sameer Africa H1 2026 Net Profit Hits KSh 103.9 Million
- Sameer Africa Plc half-year results for the period ended 30 June 2026
- Kenyan Wall Street and market reports on the land sale extension to December 2026