Liberty Kenya Holdings PLC (NSE: $LBTY)has released its audite’d financial results for the year ended December 31, 2025, revealing a significant drop in profitability despite a steady increase in top-line insurance revenue. The firm faced a challenging year on account of elevated insurance claims, a volatile global environment that had implications for emerging markets like Kenya, and the strategic disposal of its Tanzanian subsidiary.
The decline in net profit for the period under review is in line with the profit warning issued by the company for FY 2025 that indicated earnings would decline by more than 25% relative to the previous fiscal year on account of account of claims pressure, and an accounting loss arising from the disposal of the Group’s interest in Heritage Insurance Company Tanzania Limited.
The group also completed the sale of its interest in Heritage Insurance Company Tanzania Limited. This resulted in an accounting loss and meant that results from these operations were classified as discontinued, further impacting the total earnings attributable to shareholders.
Liberty Kenya Holdings Performance
Liberty Kenya Holdings saw its insurance revenue grow by 8.52% to KES 11.883 billion up from KES 10.950 billion in 2024, but this growth was offset by rising operational and service costs. Insurance service expenses grew at 19.1% year-on-year, double the growth in insurance revenue, to close the operating period at KES 10.15 billion from KES 8.53 billion in FY 2024. This led to a decline in the net insurance service result, which fell by 28.57%, moving from KES 2,422 million in 2024 to KES 1,730 million in 2025.
The impact on the bottom line was even more pronounced. Profit before tax plummeted by 47.82% to KES 1.091 billion, down from KES 2.091 billion in the prior fiscal year. The total comprehensive income for the year was KES 422 million, representing a 66.98% decline compared to the KES 1.278 billion recorded in FY 2024.
Management identified several critical factors that contributed to the reduced earnings. Both general and life insurance underwriting margins were squeezed by elevated claims in motor, medical, fire, and group life sectors.
The exceptional investment performance seen in 2024 did not recur with Net investment income dropping by 17.84% to KES 4,020 million, as reducing interest rates particularly affected general insurance earnings.
The dip in profits led to a sharp reduction in shareholder returns. Basic earnings per share (EPS) from continuing operations fell by 52% to KES 1.23, while the EPS for all operations including discontinued ones dropped 67% to KES 0.85.
Despite the contraction in profit, the Board of Directors has recommended a normal dividend of KES 0.50 per ordinary share, maintaining the same payout level as the previous year. This recommendation reflects Liberty Kenya Holdings ’s strong capital position, which remains above regulatory and internal thresholds.
Balance Sheet and Strategic Outlook
As of December 31, 2025, Liberty Kenya’s total assets stood at KES 46.306 billion, a slight 3.83% decline from the KES 48.149 billion reported in 2024. Total equity also saw a modest decline of 5.31% to KES 10.080 billion.
Looking ahead, management noted that the global operating environment remains uncertain due to geopolitical tensions and climate-related risks. However, the firm’s financial strength remains recognized, with GCR Ratings affirming an AA+(KE) rating with a stable outlook for both the life and general insurance businesses. Liberty Kenya Holdings aims to sustain growth through prudent risk management and maintaining adequate capital buffers.
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Also read: Liberty Kenya Holdings PLC Issues Profit Warning for FY2025
