TPS Eastern Africa tops Kenya’s tourism sector with $22.6 million market value

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At a Glance

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• TPS Eastern Africa posts a $4.4 million profit in H1 2024, recovering from a $0.23 million loss in 2023.
• Market cap hits $22.6 million as demand grows for leisure, corporate, and MICE tourism across its nine-country Serena Hotels portfolio.
• Operating costs rise, yet occupancy and efficiency drive revenue growth to $29 million, supported by forex gains on USD debt.

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TPS Eastern Africa Limited, the owner and operator of the Serena Hotels chain, stands as the largest publicly listed hotel and tourism entity on the Nairobi Securities Exchange (NSE). 

With a market capitalization of Ksh 2.91 billion ($22.57 million), the company accounts for approximately 0.144 percent of the NSE’s total equity market. Shares traded at Ksh 16 as of January 14, 2025.

Robust operational footprint

TPS Eastern Africa manages 35 properties, including hotels, safari lodges, resorts, and camps, across nine countries in East Africa (Kenya, Tanzania, Rwanda, Uganda, Mozambique, and Zanzibar) and South Asia (Pakistan, Afghanistan, and Tajikistan). 

Operated under the Serena brand—owned by the Aga Khan Fund for Economic Development SA (AKFED SA)—the company’s portfolio serves both business and leisure tourists and tourists.

Strong financial performance amid challenges

For the six months ending June 30, 2024, TPS Eastern Africa reported a profit after tax of Ksh Ksh 570 million($4.4 million), a sharp recovery from a loss of Ksh 30.2 million($0.23 million) during the same period in 2023. 

Revenue grew by 20.4 percent to reach Ksh 4.5 billion ($29 million), fueled by increased demand in leisure, corporate, and MICE (Meetings, Incentives, Conferences, and Exhibitions) business.

The company’s performance benefited from increased occupancy, operational efficiency, and effective management of expenses, despite rising costs in energy, property maintenance, and employment. 

Profit before unrealized exchange differences, interest, depreciation, and taxation rose 2.4 percent to Ksh 814 million($6.28 million). A significant appreciation of the Kenya Shilling against the US Dollar further contributed to a non-cash unrealized exchange gain of Ksh 453 million ($3.5 million).

Expanding East Africa’s hospitality amid challenges

Despite its recovery, TPS Eastern Africa remains exposed to risks such as political uncertainty, high inflation, fluctuating interest rates, and climate change-related issues. 

With a portfolio spread across nine countries and annual revenues driven by a diversified guest base, TPS Eastern Africa continues to solidify its reputation as a leader in the regional tourism sector. 

Through its Serena brand, the company has positioned itself as a driver of economic growth and a key contributor to East Africa’s hospitality and tourism industry.