Limuru Tea reports US$387.0K pre-tax loss in 2025
Limuru Tea’s losses deepen in 2025 as rising costs and weak tea prices erode revenue, highlighting ongoing challenges in Kenya’s tea sector.
KENYA – Limuru Tea has reported a pre-tax loss of Kes 50.02 million (US$387.0K) for the financial year ending 31 December 2025, reflecting a sharp increase from the Kes 10.63 million (US$82.24K) loss recorded in the previous year.
The decline was largely driven by rising labour and operational costs, which continued to pressure the company’s financial performance.
Net loss for the period widened to Kes 52.51 million (US$406.27K), while earnings per share fell to negative Kes 21.88. The company’s total equity also declined significantly, dropping 25.6% to Kes 130.3 million (US$1.01M). As a result of the weak performance, the board did not declare dividends for shareholders.
Revenue generation was also impacted during the year, with turnover declining by 9% to Kes 131.01 million (US$1.01M). The drop was attributed to lower tea prices at the Mombasa Tea Auction and subdued global demand.
Meanwhile, the company’s balance sheet contracted by 17.08% to Kes 163.47 million (US$1.26M).
Despite the challenging environment, green leaf production showed marginal growth, increasing by 1% to 3.753 million kilograms. However, this was not sufficient to offset the impact of lower selling prices and rising costs across operations.
Limuru Tea had earlier issued its third consecutive profit warning in February, indicating that its 2025 net profit would decline by more than 25% compared to the previous year. The company cited increased expenditure on employee wages, factory operations, and transport as key cost drivers.
The firm’s performance reflects broader pressures facing Kenya’s tea sector, including weak global demand and local oversupply, which have continued to suppress auction prices.
During the first half of 2025, Limuru Tea recorded a net loss of Kes 22.2 million, more than triple the Kes 6.8 million loss posted in the same period in 2024, despite an 8% rise in revenue supported by higher tea volumes.
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