Umeme’s H1 Loss Spurs Profit Warning, Buy-Out Cash Swells Reserves
Umeme issued a profit warning after a USh 166.7Bn H1 loss as its concession ended, even as cash swelled to USh 466.3Bn from a buy-out...
✨ Key Highlights
Umeme Limited has issued a profit warning after reporting a significant net loss of USh 166.7Bn (KSh 6.1Bn) for the half year ended June 30, 2025. This follows the expiry of its 20-year electricity distribution concession in March, leading to a sharp decline in financial performance.
- Revenue plunged by 56% to USh 503.5Bn, down from USh 1,151.8Bn in H1 2024.
- Umeme received USh 433.8Bn (KSh 16.0Bn) from the Government of Uganda as part of a buy-out amount, boosting its cash reserves despite the losses.
- The company has declared a formal dispute with the Government of Uganda over the final buy-out amount and is preparing for arbitration after talks failed.
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Nairobi Hotel for Sale at Sh1.29bn; Umeme Reports Loss; Pepsi Inks Skyward Deal - September 2025
The Best Western Plus Meridian Hotel in Nairobi has been put up for sale at an asking price of Sh1.29 billion, according to a listing by Knight Frank. In other corporate news, Umeme Limited has issued a profit warning after reporting a net loss of USh 166.7Bn (KSh 6.1Bn) for the half year ended June 30, 2025, following the expiry of its 20-year electricity distribution concession. Pepsi Beverages Kenya has secured an exclusive agreement to supply its soft drinks and water on all Skyward Airlines flights, which carry 26,000 monthly passengers. Meanwhile, loans to Micro, Small, and Medium Enterprises (MSMEs) in Kenya have risen by 2 percent to Sh153 billion this year, surpassing the annual target.
