TPS East African Plc H1 Net Loss Dips 315.5% to KSh 66.38m on Depressed Global Travel Market

TPS East Africa, owners of the Serena brand, recorded an increase in net losses to KSh 66.38 million at the end of the six months’ period ended June 30^th 2026. This is compared to a net loss of KSh 15.97 million in H1 2025.

TPS also saw revenue decline by 1.4% from KSh 4.005 billion to KSh 3.998 billion in H1 2025 while its Operating Profit also took a hit, falling 4.225 to KSh 517.1 million.

The listed hospitality firm also had its balance sheet size shrink by 2.94% to KSh 21.58 billion from KSh 22.24 billion at the close of first six months of last year.

Cash generated from operations took a 41.79% plunge from KSh 598.7 million to KSh 348.5 million as the firm pumped in KSh 271 million to upgrade its hotels and lodges across the chain. These include Manyara and Dar Es Salaam properties.

Management cites a dip in international demand due to geopolitical tensions and regional travel advisories.

TPS expects a stronger performance in the second half of the year, taking huge bets on improved bookings, airline connectivity and digital sales.

TPS Eastern Africa PLC (Serena Hotels) for shareholders, investors and other stakeholders. It reviews the group’s financial, operational and sustainability performance for the year 2025.

The listed hospitality firm, which has a Serena Hotels’ portfolio of 22 properties across six African countries, had a downturn in fortunes due to depressed tourism market conditions.

 TPS Serena Key Financials:

• Total Assets declined 2.94% to KSh 21.6 billion
• Total Equity down 2.43% to KSh 13.04 billion
• Net Finance Costs rose 3.02% to KSh 185.2 million
• Basic and Diluted EPS declined 140% to KSh0.12
• Pre-tax loss widened 6.1% to KSh 71.2 million

According to TPS East Africa Company Secretary Dominic Ng‘ang’a public health measures and travel advisories relating to Ebola outbreak in parts of the region, also hit corporate and regional travel segments.

The Group also suffered from a strong Kenya Shilling exchange rate against the US dollar and other hard currencies, with its foreign exchange gains dropping significantly from KSh 654 million to KSh 38 million in H1 2026.

TPS Serena is 67%% majority owned by the Aga Khan Fund for Economic Development(AKFED), which also has stakes in Diamond Trust Bank, Jubilee Insurance and Industrial Promotion Services.

In March this year, the Aga Khan sold his 54% stake in Nation Media Group so as to focus on its core activities in hospitality, financial services and industrials.