Shareholders of TPS Eastern Africa, which owns the Serena Hotels, will be paid 81 per cent less dividend
per share this year.
This comes after the company reversed a Sh274.4 million profit made in 2014 to record a loss of Sh280.6 million.
The loss is attributed to low tourist numbers due to bad publicity on East Africa as a travel destination.
TPS noted in a statement that the negative international publicity began in 2013 as a result of insecurity, terrorism threats and travel advisories
by foreign government agencies.
"The poaching menace cumulatively led to the withdrawal of charter flights to Kenya and a slowdown in international leisure bookings to Kenya, Tanzania and Zanzibar Stone Town," TPS also said.
The company also attributed the loss to higher taxes.
It said Kenya's decision to introduce value added tax on tourism services and park fees in 2013 made the country uncompetitive compared to other safari destinations.
The company's foreign-denominated loans resulted in a loss of Sh121.56 million due to sharp depreciation of regional currencies against the dollar.
Despite the depressed earnings, the company said Kenya's domestic leisure market had improved during the period to "satisfactory levels".
TPS, which had issued a profit warning in December, has announced a dividend payout of Sh0.25 per share, 81.5 per cent lower than the Sh1.35 paid in 2014.
The company manages 15 hotels and resorts across East Africa under the Serena brand name. It is among the 20 firms listed at the Nairobi Securities Exchange that issued a profit warning for 2015.