Centum's HY Losses Ease to KSh 326Mn on Deferred Tax Credit, Lower Finance Costs

Centum reported a steadier half-year to September 2025, with group loss after tax improving by 6%, supported by stronger subsidiary performance, a higher deferred tax credit and lower finance costs as its deleveraging drive continued to take hold.

• •Net Asset Value(NAV) per share rose to KSh 68.75 from KSh 66.93 in March as liabilities declined across the period.
• •Management said total return at company level reached KSh 472 million, slightly above last year’s KSh 444 million.
• •Operating expenses increased by 5%, in line with inflation, while finance costs fell 64% after borrowings dropped from KSh 690 million in March to KSh 605 million in September.

Other comprehensive income rose to KSh 99 million from KSh 14 million, lifted by improved performance in key subsidiaries.

Consolidated performance strengthened as Longhorn Publishers, Two Rivers Development and the TRIFIC SEZ continued to anchor group results under IFRS 10.

Deferred tax credits increased after the recognition of deferred tax assets in Longhorn Publishers and Two Rivers Land Co, reversing last year’s impact from the rise in Kenya’s capital gains tax rate.

Segment outcomes remained mixed.

• •Losses at Two Rivers Development stemmed from the power and water utility units, which are still below break-even utilization levels. Management expects profitability to improve as occupancy increases across the precinct.
• •Centum Real Estate continued to show timing differences between IFRS revenue recognition and cash receipts. Units recognized in the period came from older, lower-margin projects, while expenses for ongoing developments were expensed immediately under IFRS rules.
• •Land sales produced limited IFRS profit because revaluation-based costs exceeded the cash cost base despite strong cash margins.

The TRIFIC SEZ performance reflected upfront expensing of finance and establishment costs for the first tower. Revenue recognized in the period was mainly rental income. The tower is now in the final stages of sale to a USD-denominated income REIT. Management said completion will settle the development loan, recover set-up costs, eliminate interest charges and free capital for the next tower.

Net operating cash flow reached KSh 703 million, driven by annuity income and shareholder loan repayments. Total assets eased to KSh 49.9 billion from KSh 50.6 billion in March after loan redemptions, while total liabilities fell 20%. Borrowings dropped further to KSh 440 million after the reporting date.

The group advanced key strategic initiatives in the period, including the launch of the Vipingo Special Economic Zone with ARISE LLP and continued progress in land and unit sales in Vipingo. Full occupancy of the TRIFIC North Tower positions the asset for injection into the region’s first USD-denominated income REIT, unlocking capital for the next development phase.