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Liberty Kenya H1: Net earnings down 59 percent as Tanzania exit completes

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All figures are as disclosed by Liberty Kenya Holdings for the half year ended June 2025. The company says results were also affected by the accounting impact of selling Heritage Insurance Tanzania in April 2025.

Key numbers at a glance

  • Net earnings: KES 260 million, down 59 percent year on year.
  • Net insurance service result: KES 225 million, down 61 percent.
  • Net investment income: KES 2.08 billion, up 5 percent.
  • Net insurance finance expenses: KES 1.25 billion, up 12 percent.
  • Basic EPS (continuing operations): KES 0.80, down 30 percent from KES 1.14.
  • Total assets: KES 45.3 billion, broadly flat from June 2024.
  • Disposal proceeds: KES 503 million net from the sale of Heritage Insurance Tanzania (completed April 2025).
  • Dividend: No interim dividend declared.

What drove the decline

Liberty Kenya attributes the profit drop mainly to higher claims. In general insurance, motor and medical claims rose. In the life business, the company cites higher group risk claims and a stronger reserving basis, which together dragged the net insurance service result down 61 percent to KES 225 million.

These claims trends mirror broader pressures insurers have flagged across the market this year, where medical inflation and motor repair costs have been sticky.

Investment income up, but finance costs also rose

While underwriting was under pressure, Liberty Kenya says investment performance improved. Net investment income rose 5 percent to KES 2.08 billion, supported by market returns. Offsetting that, net insurance finance expenses climbed 12 percent to KES 1.25 billion, further straining the bottom line.

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The company notes tight expense control helped cushion earnings, alongside a solid capital base. Management adds that fully digital life insurance solutions are slated for launch later in 2025, with the aim of improving customer experience and operating efficiency.

Portfolio change: exit from Tanzania

During the period, Liberty Kenya completed the sale of Heritage Insurance Tanzania. The company reports KES 503 million in net proceeds after capital gains tax. This divestment refocuses the portfolio and simplifies the group’s footprint.

Capital and outlook

The Board observes that lower interest rates and inflation below 7.5 percent point to improving conditions, but households still face reduced disposable income, tight credit, fiscal constraints and climate risks. Against that backdrop, Liberty Kenya expects new business growth to be subdued in the near term. The company says strategy will prioritize margin improvement and capital efficiency, and confirms all entities remain above regulatory and internal capital requirements.

Sectorally, insurance is seeing renewed competitive energy from banking groups scaling into life and general lines. For example, Equity Group recently reported stronger traction across its three insurance licenses in H1 2025, underscoring how distribution and balance sheet scale are reshaping the market.

No interim dividend

The Board did not declare an interim dividend for H1 2025. The decision preserves capital as the group navigates claims volatility and executes on digital transformation plans.


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The Analyst delivers in-depth, data-driven insights on technology, industry trends, and digital innovation, breaking down complex topics for a clearer understanding. Reach out: Mail@Tech-ish.com

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