TPS Eastern Africa Loss Widens to Sh66.4 Million as Serena Hotels Revenue Declines

TPS Eastern Africa, the hospitality company managing Serena Hotels in Kenya and various East African locations, reported a widening net loss of Sh66.4 million for the first half of 2026. This loss followed a slight decline in revenue to Sh4 billion, down from Sh4.05 billion in the same period last year. The company blamed higher non-operating costs, including reduced finance income, increased depreciation, losses from related companies, and unrealized foreign exchange losses, for the decline in performance.

TPS attributed the challenges to geopolitical developments impacting international travel and energy costs, as well as public health measures and travel advisories related to the Ebola outbreak affecting regional travel. Company Secretary Dominic Ng'ang'a noted that the company expects its financial performance to improve in the second half of 2026, as recently completed refurbishment projects are anticipated to contribute more to revenue.

The company has also been focusing on reducing its debt burden and expects increased operational efficiency and growth in its digital distribution channels and loyalty program to boost revenue. Despite the short-term challenges, TPS remains optimistic about the long-term prospects of East Africa's tourism sector.