Liberty Kenya Holdings has reported a 59% decline in net earnings for the first half of 2025, with profits falling to KSh 260 million compared to KSh 632 million during the same period last year. The company attributed the drop mainly to rising motor and medical claims in its general insurance business, alongside higher group risk claims and a stronger reserving basis in the life insurance segment.
The group’s net insurance service result fell by 61% to KSh 225 million, down from KSh 577 million in June 2024, reflecting the growing claims burden.
Despite the earnings pressure, Liberty Kenya recorded stronger investment performance, with net investment income rising by 5% to KSh 2.08 billion, up from KSh 1.99 billion a year earlier. However, net insurance finance expenses increased by 12% to KSh 1.25 billion, adding further strain to the company’s bottom line.
In April 2025, the group completed the sale of Heritage Insurance Tanzania (HIT), securing KSh 503 million in net proceeds after capital gains tax. While the disposal improved liquidity, the accounting impact weighed on profitability for the period.
Earnings, Assets, and Dividend Position
- Basic earnings per share (EPS): Dropped 30% to KSh 0.80 from KSh 1.14 in 2024.
- Total assets: Remained stable at KSh 45.3 billion, compared to KSh 45.2 billion a year ago.
- Interim dividend: The Board has not declared an interim dividend for the first half of 2025.
Group CEO Kieran Godden said Liberty Kenya’s resilience stems from its ability to balance short-term pressures with long-term strategies.
“Even though higher claims reduced our earnings, our strong investment performance, good expense control, and solid capital base helped us stay resilient. We are now looking forward to launching fully digital life insurance solutions later this year to enhance customer experience and strengthen our market position,” Godden stated.
The Board noted that while lower interest rates and inflation below 7.5% signal improved macroeconomic conditions, households continue to face pressure from reduced disposable income, tight credit conditions, fiscal constraints, and climate change-related risks.
Looking ahead, Liberty Kenya plans to:
- Focus on margin improvement and capital efficiency
- Leverage its strong capital position, with all entities remaining well-capitalized above regulatory requirements
- Expand its digital insurance offerings to drive growth in a subdued new business environment
