Liberty Kenya Holdings Plc released its half-year 2025 results, posting a 29.8 percent decline in profit after tax to KES 0.4 billion, compared to KES 0.6 billion in the first half of 2024. The earnings drop was mainly attributed to weaker insurance service revenues and softer investment income, both of which weighed heavily on the bottom line.
Insurance operations came under pressure during the period, with net insurance service revenue falling by 61.0 percent to KES 0.2 billion from KES 0.6 billion in H1’2024. The decline reflected a slowdown in premium income and the impact of reinsurance costs, which compressed underwriting margins. On the investment side, net revenue declined by 4.7 percent to KES 0.8 billion, despite investment income increasing by 4.6 percent to KES 2.1 billion. Higher finance expenses, which rose 11.8 percent to KES 1.3 billion, outpaced gains and reduced overall returns.
As a result, profit before tax declined by 27.4 percent to KES 0.7 billion, while core earnings per share fell to KES 0.8 from KES 1.1 in the same period last year, highlighting weaker returns for shareholders in the short term.
On the balance sheet, Liberty Kenya reported marginal growth. Total assets stood at KES 45.3 billion, a 0.3 percent increase from KES 45.2 billion in H1’2024. Financial investments rose by 11.2 percent to KES 29.7 billion, reflecting the company’s continued focus on portfolio growth, while reinsurance assets increased by 19.3 percent to KES 1.5 billion. On the liabilities side, insurance contract obligations rose 17.4 percent to KES 20.7 billion, driven by higher policyholder commitments. Shareholders’ funds remained relatively flat at KES 9.9 billion, indicating a stable capital base despite the weaker earnings.
The Board of Directors did not declare an interim dividend for the half year, maintaining a cautious stance similar to last year’s decision.
Liberty Kenya plans to strengthen its business by leveraging technology. Key initiatives include the unification of policy administration systems, upgrades to actuarial and medical business platforms, and enhanced digital readiness through API integration. Management expects these investments to improve operational efficiency, enhance customer experience, and create a stronger foundation for long-term growth.
