(NAIROBI, KENYA) – Liberty Kenya Holdings has reported a 46 percent fall in net profit from continuing operations for the six months to June 2026, weighed down by reduced investment income even as the insurance business recorded stronger results.
Net earnings from continuing operations stood at KES231 million ($1.6 million / £1.3 million / €1.5 million), down from KES428 million ($3.0 million / £2.4 million / €2.8 million) in the same period a year earlier. Total earnings including discontinued operations were KES231 million, compared with KES260 million in the first half of 2025.
The discontinued operations, which involve sections of a company that are either sold or terminated and must be reported separately from ongoing activities, contributed nothing to earnings in the review period. This compares with a loss of KES168 million ($1.2 million / £0.9 million / €1.1 million) in the first half of 2025.
The discontinued business relates to Heritage Insurance Company Tanzania Limited, which Liberty exited in April 2025 after more than 25 years as part of a strategy to refocus on Kenya. The insurer said the decline in earnings was largely driven by weaker returns from its investment portfolio amid lower interest rates.
Net investment income declined 22.7 percent to KES1.68 billion ($11.6 million / £9.2 million / €10.9 million) from KES2.17 billion ($15.0 million / £11.9 million / €14.1 million). This offset gains in the insurance business, with the net insurance service result rising to KES448 million ($3.1 million / £2.4 million / €2.9 million) from KES225 million ($1.6 million / £1.2 million / €1.5 million).
Liberty said investments held are a significant contributor to group earnings and income declined during the period mainly because of the lower interest rate environment that has manifested in reduced net yields.
The decline in investment income mirrors that of Sanlam Allianz Holdings Kenya, whose investment earnings fell 83.2 percent to KES479.55 million ($3.3 million / £2.6 million / €3.1 million) from KES2.86 billion ($19.8 million / £15.7 million / €18.6 million), contributing to that insurer’s fall in profit from continuing operations.
The decline in profitability pushed Liberty’s basic and diluted earnings per share from continuing operations to 43 cents from 80 cents. The group said its general insurance business continued to face elevated claims, while operating expenses increased due to investment in a systems migration project.
The group said operating expenses were higher because of the systems migration, describing the spending as a one-off investment to provide the company with the latest tools and technologies. Liberty added that the group delivered resilient operational performance during the first half of 2026, with a significant increase in the insurance service result compared to the corresponding period in 2025.
The group did not recommend an interim dividend for the period.