Liberty Kenya Holdings Plc has reported a sharp decline in profit for the first half of 2025 as underwriting losses from higher motor and medical claims weighed on the listed financial services provider.
- •Profit after tax from continuing operations fell 30% to KSh 428 million, compared with KSh 610 million a year earlier.
- •Total earnings slumped 59% to KSh 260 million, reflecting discontinued operations from the April 2025 sale of Heritage Insurance Tanzania. Basic earnings per share dropped to 0.80 from 1.14.
- •Net insurance service result declined 61% to KSh 225 million, hurt by higher claims in general insurance and stricter reserving in life.
A bright spot was a 5% growth in net investment income to KSh 2.08 billion, helping cushion weaker underwriting. Total assets edged up 0.3% to KSh 45.34 billion, supported by an 11% rise in financial investments and a 40% surge in cash balances to KSh 10.3 billion.
Insurance contract liabilities also grew 17% to KSh 20.65 billion, reflecting rising obligations. Equity stood at KSh 9.85 billion, broadly unchanged from last year.
Performance Highlights
| Metric | June 30 2025 | June 30 2024 | YoY % |
|---|---|---|---|
| Net insurance service result | 225 Mn | 577 Mn | -61.01% |
| Net investment income | 2.08 Bn | 1.99 Bn | 4.58% |
| Net insurance & investment result | 1.05 Bn | 1.44 Bn | -27.06% |
| Profit before tax | 690 Mn | 950 Mn | -27.37% |
| Profit after tax (continuing ops) | 428 Mn | 610 Mn | -29.84% |
| Total earnings (incl. disc. ops) | 260 Mn | 632 Mn | -58.86% |
| EPS | 0.80 | 1.14 | -29.82% |
| Total assets | 45.34 Bn | 45.21 Bn | 0.29% |
| Financial investments | 29.68 Bn | 26.68 Bn | 11.23% |
| Cash and cash equivalents | 10.32 Bn | 7.38 Bn | 39.83% |
| Insurance contract liabilities | 20.65 Bn | 17.59 Bn | 17.40% |
| Equity | 9.85 Bn | 9.80 Bn | 0.53% |
| Net cash movement | 1.21 Bn | -4.21 Bn | Turnaround |
Tanzania Exit and Dividend
Liberty Kenya completed the sale of Heritage Insurance Tanzania in April 2025. The group realised net proceeds of KSh 492 million after taxes and fees, but booked a commercial loss of KSh 28 million and a KSh 217 million foreign exchange recycling loss under IFRS. The exit, announced earlier in May alongside FY2024 results, supported a special dividend of KSh 0.60 per share in addition to a KSh 1.00 normal dividend, bringing the FY2024 payout to KSh 1.60 per share, one of the highest in its history.
Liberty Kenya plans to launch new fully digital life insurance products in H2 2025 to strengthen market positioning. The insurer highlighted inflation stability below 7.5% and stronger GDP growth as positives, but cautioned that consumer income pressure, credit constraints, fiscal challenges, and climate risks remain headwinds.
