Liberty Kenya half-year profits fall 46% to Sh231m

Liberty Kenya Holdings Plc has reported a 46 per cent drop in half year earnings to Sh231 million due to lower investment income.

PWBy: Ian
IN BRIEF:
  • Insurance service result: +99% to Sh448m
  • Net insurance and investment result: -7% to Sh1.06B
  • Profit before tax: -42.5% to Sh397m
  • Profit after tax: -46% to Sh231m
  • Earnings per share: Sh0.43 [2025: Sh0.80]
Liberty Kenya Holdings Plc has reported a 46 per cent drop in half year earnings to Sh231 million for the half year period ended June 2026 due to lower investment income.
The Group reported half year earnings of Sh480 million during the same period last year.
Management attributed the decline to lower investment income which is a significant contributor to the group’s earnings.
Net investment income declined by 22.6 per cent to Sh1.68 billion, down from Sh2.17 billion reported during the same period last year.
The Group said: “Investments held are a significant contributor to group earnings and income unfortunately declined during the period mainly because of the lower interest rate environment that has manifested in reduced net yields.”
Insurance service result, which is the core operating profit/loss an insurance company makes from underwriting business before accounting for financing effects, nearly doubled to Sh448 million compared to Sh225 million reported a year earlier.
Management attributed the increase in insurance service result to continued growth in its life and general insurance businesses, although general insurance business continued to face higher claims.
“The result(insurance service result) reflects continued momentum across both life and general insurance businesses and demonstrates the strength of the group’s diversified business model. However, the general insurance business continues to experience elevated claims experience,” the company said in a statement accompanying the results.
Operating expenses rose 11 per cent to Sh758 million from Sh682 million, driven by a one-off cost related to the Group’s ongoing systems migration aimed at giving customers access to latest tools and technologies.
The Group launched HeriAfya Seniors and HeriAfya Juniors during the period to complement the already successful HeriAfya medical retail offering.
The insurer also enhanced its LifeVest investment solution to integrate long-term wealth creation and expanded insurance protection.
The board did not recommend the payment of an interim dividend.

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