BUSINESS

Liberty Kenya Retreats From Tanzania, 2024 Profit Surges 109%

Earnings rise to Ksh1.402 billion on strong investment gains and prudent cost management

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Liberty Kenya Holdings CEO
Liberty Kenya Holdings CEO Kieran Godden.
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Liberty Kenya Holdings Plc posted a 108.5% increase in profit after tax to Ksh1.402 billion for the financial year ended 31st December 2024, up from Ksh672 million in 2023. The growth is attributable to strong investment gains, increased insurance earnings, improved claims experience, and disciplined cost management across its Kenyan operations.

Liberty Kenya Holdings insurance revenue rose to Ksh10.95 billion in 2024. Insurance service expenses declined slightly by 1.1% to Ksh8.53 billion, compared to Ksh8.62 billion in 2023. Consequently, the Group reported an insurance service result of Ksh1.004 billion, representing a 5.6% growth over the Ksh951 million achieved in 2023.

“Despite operating in a complex macroeconomic environment, our teams delivered exceptional results by combining prudent risk management, customer-centric innovation, and strong investment returns. We are confident that our strategy will continue to make financial freedom possible for all our customers, and create long-term value for all our stakeholders,” said Kieran Godden, Liberty Kenya Holdings Group Chief Executive Officer.

During the year, Liberty Kenya Holdings made strategic progress in streamlining its portfolio. The sale of its 60% stake in Heritage Insurance Tanzania is well underway and has been classified as a discontinued operation in the 2024 results, in line with IFRS requirements. The transaction is expected to conclude in the first half of 2025, pending regulatory approvals. The divestiture of the Tanzanian subsidiary is not expected to materially affect the Group’s future earnings.

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Net investment income surged significantly to Ksh4.741 billion, more than tripling the Ksh1.424 billion recorded in 2023. This was largely driven by a recovery in capital markets and favourable interest rate movements towards the end of the year. Earnings per share more than doubled, climbing 112% to Ksh2.59 in 2024 from Ksh1.22 in 2023, reflecting  strong profitability and commitment to delivering value to its shareholders.

Total assets grew by 10% to close the year at Ksh48.15 billion, up from Ksh43.76 billion in 2023. This asset growth is a testament to Liberty’s financial strength and its ability to meet obligations and future liabilities.

Looking ahead, the Group is cautiously optimistic. “While the exceptional investment gains seen in 2024 may not be replicated in 2025, we remain well positioned for sustainable profitability through operational efficiency and strategic growth initiatives,” said Kieran Godden.

Thanks to the strong performance, the Board has recommended a final dividend of Ksh1 per share (Ksh0.5 ordinary and Ksh 0.5 special), up from Ksh0.373 in 2023, marking a significant increase in returns to shareholders. The proposed dividend will be subject to shareholder approval during the Annual General Meeting slated for 23rd May 2025.

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Written by
BT Correspondent -

editor [at] businesstoday.co.ke

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