NAIROBI, Kenya, Aug 27 – Wananchi Group, the owner of Zuku, posted a net loss of Sh806 million ($6.2 million) in the first half of 2026, weighing on the earnings of its parent company.
The Kenyan internet and telecommunications provider generated revenue of Sh3.55 billion ($27.3 million) in the six months to June, according to financial results released by the parent group.
Wananchi’s loss was among the factors that reduced the parent group’s net profit by $44.9 million year-on-year during the period.
The group said the results included the $6.2 million loss from Wananchi and an $80.5 million adverse fair-value movement in operating profit, mainly related to its investment in Jumia.
“Without these impacts we would have reflected an increase of $41.8 million,” the group said.
Despite the pressure from Wananchi, group revenue increased 26.5 percent to $980 million in the first half of 2026, from $774.9 million a year earlier.
Wananchi contributed $27.3 million to the group’s revenue, while revenue from operations outside Kenya rose 22.9 percent.
The group attributed the growth largely to stronger performances in Tanzania and Madagascar, whose revenues increased by $38.5 million and $26.5 million respectively.
Businesses in Senegal, Togo, Comoros and Uganda also recorded year-on-year revenue growth.
However, operating costs rose 21.2 percent during the period, putting pressure on earnings.
Wananchi recorded a $3.9 million loss in the second quarter and contributed $12.5 million in revenue to the group.
The performance comes amid intense competition in Kenya’s broadband and pay-TV markets, where providers are investing in fibre networks while facing pressure to keep prices affordable.
Wananchi operates the Zuku brand, offering fibre broadband, internet and pay-TV services in Kenya and other African markets.
The group said its underlying performance would have been stronger without the Wananchi loss and fair-value impact, with net profit instead rising by $41.8 million, supported by higher operating profits, increased earnings from associates and lower finance costs.
