Liberty Kenya Holdings has announced that it has registered a 59% drop in net profit to Ksh. 260 million for the half year period ended 30th June 2025. This is from the Ksh. 632 million the company posted 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 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 Ksh. 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.
Basic earnings per share (EPS), for continuing operations, dropped to KShs 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 Ksh. 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 percent signal improved economic conditions, households continue to feel the pressure of reduced disposable income, tight credit, fiscal challenges, and climate change risks.
The Board has not declared an interim dividend for the period.