TPS Eastern Africa Plc, the owners of Serena Group of Hotels which is majority-owned by the Aga Khan Fund for Economic Development (AKFED), is warning of a significant drop in profits, expecting a fall of over 25% in 2025.
This is largely due to currency conversion woes that have been a constant headache for the listed hospitality concern for years now. Matters have been made worse by travel advisories, and booking cancellations that appear to have taken a toll on their performance.
TPS Serena has assets or debts in US Dollars. With a strong Shilling, this means that the value of this debt or assets has decreased, resulting in unrealized gain or paper profit. This gain was KSh 453 million in H1 2024, thanks to a stronger Shilling. In the event that the Shilling weakens in the future, this gain could be wiped out, severely hurting the Group’s profits.
The Kenya shilling exchange rate against the US Dollar, has struck at the KSh 129 range for the better part of 2024 and this year.
TPS Serena also cites higher accounting( IFRS 9) provisions are impacting their business projections. IFRS 9 provisions relate to expected credit losses on financial instruments, so this increase suggests TPS is anticipating potential losses, likely linked to the challenging operating environment the listed hospitality firm is finding itself in.
TPS Serena Half-Year Results 2025
In the six months’ period ended 30th June 2025, TPS Serena saw its Revenues fall by 11% to KSh 4.1 billion compared to KSh 4.5 billion in H1 2024.
The Group recorded a Net Loss of KSh 16 million compared to a Net profit of KSh 696 million in H1 2024.
Earnings per Share, a measure profitability, fell to KSh 0.05)Â compared to KSh 2.34 in the prior period H1 2024. This fall decrease in profitability is primarily attributed to reduced margins and the absence of exceptional currency gains experienced in 2024.
Net Cash generated from operating activities decline to KSh 599 million compared to KSh 649 million in H1 2024. Investing activities used up KSh 590 million, for property and equipment purchases compared to KSh 623 million in H1 2024.
TPS Share Price Performance
Following the profit warming, TPS Serena Share prices plunged as investors at the Nairobi Securities Exchange(NSE) priced in the information.
Total equity attributable to the Company’s equity holders decreased to KSh 10.3 billion as of 30 June 2025 from KSh 10.6 billion as of 31 December 2024. The change is primarily due to the loss for the period and the impact of currency translation differences.
TPS Eastern Africa, also known as Serena Hotels, is a hospitality company operating hotels, lodges, and resorts in East Africa, Southern Africa, and South Asia. They have a diverse portfolio of 35 luxury properties, including – Hotel Properties: Nairobi Serena Hotel, Serena Beach Resort & Spa, and safari lodges in Kenya, Tanzania, Uganda, Rwanda, and Mozambique.
The listed hospitality firm also offers accommodation, dining, and recreational activities like safaris and golfing, across East Africa, Southern Africa, and South Asia, including Pakistan, Afghanistan, and Tajikistan.
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