Liberty Kenya Holdings leaned on stronger investment fee income and strict cost control to cushion the impact of rising claims, which impacted the group’s profitability in the first half of 2025. The results were also impacted by the accounting impact of the disposal of Heritage Insurance Tanzania.
The group posted a net profit of Ksh 260 million, a 59% drop from Ksh 632 million in the same period last year. The decline was mainly due to an increase in motor and medical claims in the general insurance business, as well as higher group risk claims and a stronger reserving basis in the life business. The Board has not declared an interim dividend for the period.
The group’s net insurance service result fell by 61% to KSh 225 million, compared to KSh 577 million a year earlier, showing the impact of the higher claims burden. However, Liberty Kenya recorded stronger investment returns, with net investment income rising by 5% to KShs 2.08 billion, up from KSh 1.99 billion in June 2024. On the other hand, net insurance finance expenses rose by 12% to KSh 1.25 billion, further straining earnings.
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Basic earnings per share (EPS), for continuing operations, dropped to KSh 0.80, down 30% from KSh 1.14 last year. The group’s total assets stood at KSh 45.3 billion, almost unchanged from KSh 45.2 billion in June 2024.
During the period, Liberty Kenya also completed the sale of Heritage Insurance Tanzania (HIT) in April 2025, earning KShs 503 million net proceeds after capital gains tax.
Group Chief Executive Kieran Godden said Liberty Kenya’s resilience rests on its ability to balance short-term pressures with long-term growth 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, which will improve customer experience and strengthen our position in the market,”.
The Board noted that while lower interest rates and inflation below 7.5% signal improved economic conditions, households continue to feel the pressure of reduced disposable income, tight credit, fiscal challenges, and climate change risks.
Liberty Kenya said that while new business growth is likely to remain subdued, the Group will focus on margin improvement and capital efficiency. All Group entities remain well-capitalised, above both regulatory and internal capital requirements, ensuring continued financial strength and flexibility.
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