TPS Eastern Africa PLC, the Nairobi-listed operator of the Serena Hotels brand across Eastern Africa, reported a 40.2% decline in profit after tax to KSh 787.15 million for the year ended 31 December 2025.
- •Revenue edged down 0.68% to KSh 10.12 billion, broadly stable despite a difficult first half marked by public protests, travel advisories, and a reduction in US donor funding that cut into NGO and institutional bookings across the portfolio.
- •Total assets rose 10.1% to KSh 22.24 billion, driven partly by a KSh 1.55 billion non-cash revaluation of land and buildings across its Eastern African property portfolio.
- •A KSh 615 million swing in unrealized foreign exchange gains stripped out the windfall that inflated 2024 earnings, when the appreciation of the Kenya shilling generated an unrealised FX gain of KSh 654.53 million from the revaluation of dollar-denominated liabilities.
In 2025, with the shilling anchored at around KSh 129 to the dollar, that gain collapsed to KSh 38.84 million. Strip out both figures and the underlying business was essentially flat.
The group recorded a net loss of KSh 15.9 million in H1 2025 before the peak migration season at its Kenya and Tanzania lodges drove a second-half recovery.
EBITDA declined a modest 7.0% to KSh 2.27 billion, while operating cash flow strengthened to KSh 1.99 billion from KSh 1.76 billion.
Cost discipline held with Inventory costs falling 4.0% to KSh 1.41 billion, other operating expenses grew 2.6%, and employee costs across the group's 3,223-strong workforce were nearly flat at KSh 2.95 billion. Finance costs fell to KSh 350.84 million from KSh 446.23 million as the group continued deleveraging, with total borrowings reduced to KSh 2.52 billion from a KSh 6.19 billion peak in 2021, when the company was absorbing the combined weight of pandemic losses and legacy capital expenditure.
Capital expenditure climbed to KSh 1.06 billion, the highest since 2017, directed at product upgrades across key properties.
The board maintained the dividend at KSh 0.35 per share, payable on or about 30 July 2026 to shareholders on the register at 26 June 2026. Basic EPS fell to KSh 2.77 from KSh 4.54.
Having peaked at KSh 2.73 billion in 2023 on the back of post-pandemic demand, TPS EBITDA has now declined for two consecutive years to KSh 2.27 billion.
Management attributes the compression to geopolitical disruptions, elevated fuel costs, and constrained institutional travel budgets, and has pointed to growing corporate and leisure market share, experiential travel offerings, and continued property investment as its priorities for 2026.
