Limuru tea narrows H1 2026 loss to US$163.4K
Limuru Tea recorded its highest first-half revenue since 2010 and a record 492 tonnes of made tea, but rising labour costs continued to weigh on profitability.
KENYA – Listed tea producer Limuru Tea Plc narrowed its first-half pre-tax loss by 4.8% to Kes 21.14 million (US$163.42K) in 2026, despite a 23% increase in revenue to Kes 69.91 million (US$540.43K) and higher tea production.
The company produced 2,212 tonnes of green leaf during the six months, which was processed into 492 tonnes of black tea, the highest first-half output disclosed in its reviewed records.
Limuru Tea said the modest improvement in its pre-tax loss was supported by relatively stable tea prices during the period. However, prices softened towards the end of June as market conditions weakened, while rising labour costs continued to increase production expenses.
Management said it would continue implementing cost-containment and quality-improvement measures to strengthen operational efficiency and product quality.
The latest results represent a significant increase in activity for the company. First-half turnover of Kes 69.91 million was Limuru Tea’s highest for the period since 2010, when revenue reached Kes 74.27 million (US$574.13K).
Despite the recovery in revenue and production, the company has reported first-half pre-tax losses in nine of the past 10 years since 2017. H1 2022, when Limuru recorded a pre-tax profit of Kes 6.43 million, remains its only profitable first half during the period.
Before 2017, the company regularly reported first-half profits, including Kes 33.16 million in 2010, Kes 18.81 million in 2013 and Kes 6.25 million in 2016.
The prolonged losses have also reduced Limuru Tea’s equity position. Total equity declined 58% from Kes 258.63 million (US$1.99M) in H1 2016 to Kes 109.17 million (US$843.01K) in June 2026. Net current assets fell from Kes 130.99 million (US$1.01M) to Kes 36.68 million over the same period.
The H1 performance follows the company’s weakest recent full-year result. Limuru reported a Kes 52.51 million net loss in 2025, compared with Kes 15.22 million in 2024, while turnover declined 9% to Kes 131.01 million.
In February, Limuru warned that higher industry wages, weaker Mombasa auction prices, lower global tea demand and elevated Kenyan tea stocks were affecting its performance.
Management said it would continue with cost-containment and quality-improvement initiatives. The board did not recommend an interim dividend.
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