Express Kenya has disclosed the sale of a portion of its land holdings for Sh300 million in an effort to raise funds to clear its debt obligations and improve its cash position.
The listed logistics firm said the disposal of the three acres of its Industrial Area land was concluded early this year.
Express sunk deeper into losses to Sh125 million for the full year ended December 2025 owing to a 19 percent drop in revenues. The company had posted a loss of Sh107.9 million in the prior year.
‘This decrease is attributed to decreased rental of space during the year when the company commenced the construction of a strip mall and filling station in the first phase of its planned projects on the company land which was part of the storage facility,’ said Express Kenya.
The company’s accumulated losses rose to Sh666 million following years of loss making attributable to stiff competition in the logistics industry and delays in executing real estate projects. Express expects to complete the first phase of its construction during the year with part of the cash raised from the property sale earmarked for the project.
‘On 4 June 2025, the company entered into an agreement to dispose of three acres for Sh300 million and the transaction was completed after year-end due to administrative delays in processing new titles after subdivision,’ said the company.
‘As a result, this sale was not reported in the financial year ended 31 December 2025. Since the transaction was subsequently completed in quarter one of 2026, the transaction will be reported in financial statements for the year ended 31 December 2026,’ it added.
Express is also looking at using proceeds from land sale to reduce its debt with its borrowings rising 12.1 percent to Sh429 million. Its financing costs rose 27 percent to Sh51.5 million.
The debt includes borrowings from some of its directors including Hector Diniz on whom it has relied on for working capital over the years.
The company has posted losses in the last decade after taking a blow from losing its key customer East African Breweries Limited (EABL) in 2011. Its rival DHL took over the EABL contract at the time.
Investment property remains Express Kenya’s main asset. The company had earlier announced plans to venture into real estate development by leveraging its land bank but the strategy is yet to progress.
The company’s share price on the Nairobi Securities Exchange traded at Sh7.22 on Monday, giving it a market capitalisation of Sh344.4 million.
The losses have seen its shareholders including Mr Diniz and billionaire investor Paul Wanderi Ndung’u go without dividends for years.