NAIROBI, Kenya, Aug 25 – TPS Eastern Africa, which operates Serena Hotels in Kenya and other East African markets, widened its net loss to Sh66.4 million in the six months ended June 2026, as revenue declined slightly.
The loss compares with a smaller loss in the corresponding period last year, while revenue fell to Sh4 billion from Sh4.05 billion.
TPS Eastern Africa attributed the weaker performance largely to non-operating costs, including lower finance income after using cash reserves, higher depreciation following recent capital investments, losses from associated companies and unrealised foreign exchange losses.
The company also said geopolitical developments affected international travel and energy costs during the period.
“Public health measures and travel advisories relating to the Ebola outbreak in parts of the region also affected corporate and regional travel segments. This resulted in a mixed business performance across the Group’s various source markets,” Company Secretary Dominic Ng’ang’a said on behalf of the board.
The company, which has assets worth about Sh22 billion and shareholders’ equity of more than Sh13 billion, expects its performance to improve in the second half of the year.
TPS said recently completed refurbishment projects, including upgrades at Dar es Salaam Serena Hotel and the conference centre at Lake Manyara Serena Safari Lodge, are expected to support revenue growth.
The group also expects improved operational efficiency, lower financing costs following debt reduction and increased revenue from digital distribution channels and the Serena Prestige Club loyalty programme.
TPS said it remains optimistic about the long-term outlook for East Africa’s tourism industry despite near-term challenges.
“The Group remains confident in the long-term fundamentals of East African tourism and in Serena Hotels’ ability to manage near-term uncertainties while continuing to create sustainable long-term value,” the company said.
