The Lower Eastern Times Opening The Third Eye
Wananchi Group, the parent company behind Zuku, reported a net loss of Sh806 million (about $6.2 million) for the first half of 2026, dragging down its broader group’s overall financial performance.
The Kenyan internet and telecom provider brought in Sh3.55 billion ($27.3 million) in revenue during the six months to June, according to the parent company’s latest financial disclosures.
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This loss, combined with an $80.5 million negative fair-value adjustment tied largely to its stake in Jumia, contributed to a $44.9 million year-on-year decline in the group’s net profit. The company noted that excluding these two factors, it would have actually posted a $41.8 million increase in profit.
Even with Wananchi’s struggles, the wider group saw overall revenue grow by 26.5 percent, reaching $980 million compared to $774.9 million in the same period last year. Wananchi accounted for $27.3 million of that total, while revenue from markets outside Kenya grew nearly 23 percent, led primarily by strong gains in Tanzania and Madagascar — which added $38.5 million and $26.5 million in revenue respectively. Smaller but notable growth was also seen in Senegal, Togo, Comoros and Uganda.
On the cost side, operating expenses rose by 21.2 percent, squeezing margins across the group. Wananchi’s second-quarter numbers showed a $3.9 million loss on $12.5 million in revenue.
The company’s difficulties come against a backdrop of fierce competition within Kenya’s broadband and pay-TV sector, where operators are pouring investment into fibre infrastructure while under pressure to keep consumer prices low. Zuku, Wananchi’s flagship brand, provides fibre broadband, internet, and pay-TV services across Kenya and several other African countries.
Ultimately, the group emphasized that its core business remains healthy — pointing out that stripping out the Wananchi loss and the Jumia-related fair-value hit, net profit would have risen by $41.8 million, boosted by stronger operating profits, higher income from associate companies, and reduced finance costs.
