TPS Eastern Africa, the Nairobi Securities Exchange listed owner of the Serena Hotels chain, sank deeper into the red in the first half of 2026. The company posted a pretax loss of KES 75.2 million, a sharp reversal from the KES 1.2 million loss recorded in the same period last year.
Revenue for the six months slipped 1.4% to KES 4.00 billion. Management pointed to softer international travel demand as the main drag on room and occupancy income. Other income offered some relief, climbing 17.5% to KES 220.9 million, but it wasn’t enough to offset pressure elsewhere in the business.
Operating profit before depreciation and finance costs fell 4.2% to KES 517.1 million. From there, the numbers worsened down the income statement. Higher depreciation charges, reduced finance income and a non-cash foreign exchange revaluation loss combined to push the group into a bigger loss than a year earlier.
The Numbers at a Glance
| Metric | H1 2026 | H1 2025 | Change |
|---|---|---|---|
| Revenue | KES 4.00B | KES 4.06B | -1.4% |
| Other income | KES 220.9M | KES 188.0M | +17.5% |
| Operating profit (before depreciation, finance costs) | KES 517.1M | KES 539.7M | -4.2% |
| Loss before tax | KES 75.2M | KES 1.2M | Wider loss |
| Loss after tax | KES 66.4M | KES 16.0M | Wider loss |
| Loss attributable to shareholders | KES 33.9M | KES 13.3M | Wider loss |
| Loss per share | KES 0.12 | KES 0.05 | Wider loss |
| Interim dividend | None | — | — |
Bottom Line Deteriorates Further Down the Statement
The loss after tax for the period came in at KES 66.4 million, up from KES 16.0 million a year earlier. Loss attributable to shareholders more than doubled to KES 33.9 million, from KES 13.3 million in H1 2025. That pushed the loss per share to KES 0.12, compared with KES 0.05 previously.
As it did last year, the board held back an interim dividend, choosing to preserve cash rather than pay out against a loss making half.
Management Points to a Stronger Second Half
Serena Hotels attributed the weaker result to a mix of factors: softer demand from international travelers, rising depreciation on the group’s hotel and lodge portfolio, lower finance income, and a non-cash loss from revaluing foreign currency exposures. None of these, management stressed, reflect a drop in underlying guest demand at the property level.
The company struck an optimistic note on the outlook, saying forward bookings for the second half remain encouraging. Serena’s business typically leans on the second half of the year, when Kenya and Tanzania’s peak migration season draws in high value safari and leisure travel that can offset a quieter first half.
Whether that seasonal lift is enough to pull the group back into profit for the full year will depend on how quickly international arrivals recover and whether currency swings stay calm through the rest of 2026.
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