TPS Eastern Africa trading as Serena Hotels has issued a profit warning.
The luxury hotel group says its after tax profit for the financial year ending 31 December 2025 is expected to decline by more than 25%.
The listed group attributes the expected decline to tough business operations and revaluing of its foreign currency loans.
“Several challenges have affected performance, including regional security concerns, travel advisories, booking cancellations, and increased provisions for outstanding receivables under IFRS 9” it says in a notice to shareholders.
The group reported a Ksh15.9M net loss in its half year earnings but remained optimistic about improved performance.
Gen-Z protests in Kenya and elections jitters in neighboring Uganda and Tanzania where the group operates have led to operational challenges for the tourism sector in 2025.