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Liberty Kenya nearly triples dividend on doubled net profit
The latest dividend, amounting to Sh535.7 million, marks a rise from Sh0.373 per share totalling Sh199.82 million that was paid in the previous period.
Liberty Kenya Holdings (LKH) has raised its dividend 2.6 times made up of an ordinary and special distribution of Sh0.50 per share after the net profit for the financial year ended December 2024 more than doubled to Sh1.37 billion.
The latest dividend, amounting to Sh535.7 million, marks a rise from Sh0.373 per share totalling Sh199.82 million that was paid in the previous period.
The improved payout has come on the back of the net profit rising 2.2 times to Sh1.37 billion from Sh631 million paid a year earlier.
“The exceptional investment performance experienced during 2024 is unlikely to be replicated in 2025. LKH Group, however, remains well-positioned for sustainable and improving operating profitability through prudent risk management, operational efficiencies, and strategic investments,” said the insurer in a commentary accompanying financial results.
Liberty’s insurance service result— which is premiums received less claims payment and expenses incurred—rose 5.6 percent to Sh1 billion while net investment income rose 3.3 times to Sh4.74 billion from Sh1.4 billion, leading to the rise in net earnings.
The proposed rise in dividend payout comes at a time when the insurer is at the advanced stage of selling its entire stake in Heritage Insurance Company Tanzania, in a deal that will mark the end of its over 25-year presence in Tanzania.
The insurance firm, which holds a 60 percent stake in the Tanzanian unit, has now classified this subsidiary as an asset held for sale.
The unit has an asset value of Sh5.33 billion and a liability of Sh4.48 billion attached to it, giving it a book value of about Sh850 million. Liberty says it expects to close the sale by the end of June this year.
“The sale of the group’s 60 percent ownership in Heritage Insurance Tanzania is progressing well... The sale is expected to be concluded within the first half of 2025 after all pending regulatory approvals are received,” said Liberty.
The exit from Tanzania will be on the back of the unit having reported a large mining-related claim estimated at Sh4 billion in the financial year ended December 2023.
Liberty Kenya, which is 73.47 percent owned by Liberty Holdings Limited, a South African registered investment holding company, has not disclosed who will be buying the stake in the Tanzanian unit and the value of the deal.
The other 40 percent stake in Heritage Insurance Company Tanzania is held by Mac Group Tanzania Limited, a local investment company with interests in various sectors of the economy.
The sale of the Tanzanian unit will leave Liberty Kenya with Liberty Life Assurance Kenya Limited, Heritage Insurance Company Kenya Limited, and CFC Investment Limited—all of which it owns 100 percent.
