Home Afrika Profit Masks Deep Balance Sheet Stress as Equity Gap Persists
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Home Afrika has swung into profit again, but its financial foundation remains fragile. Despite cost cuts and margin gains, negative equity still weighs heavily on the developer.
Home Afrika Limited has reported a net profit of KSh 117.9 million for FY2025, even as revenue dropped 34.9% to KSh 508.7 million. The Nairobi-listed developer managed to remain profitable, but underlying financial pressures continue to shape its outlook.
The company’s equity position remains deeply negative at about KSh 1.03 billion, although this is an improvement from KSh 2.33 billion the previous year. The recovery was supported by cost reductions and accounting adjustments rather than strong revenue growth.
Operating efficiencies improved and cash generation strengthened, but trade receivables nearly doubled and a KSh 680.95 million bond obligation remains unresolved.
The board opted against declaring a dividend, signaling continued focus on stabilising the balance sheet and reducing long-term liabilities.