Liberty Kenya Holdings PLC has issued a profit warning, saying earnings after tax for 2025 are expected to be at least 25 percent lower than in 2024.
The insurer blamed reduced investment yields, an accounting loss from the sale of its Tanzania unit and higher claims, while insisting it remains profitable with a strong capital base.
In a statement released on Monday under Kenya’s capital markets disclosure rules, the company said preliminary unaudited consolidated financial results indicate that profits after tax are likely to be at least 25 percent lower than the audited earnings after tax for the year ended December 31, 2024.
The warning, issued in line with the Capital Markets (Public Offers, Listings and Disclosures) Regulations, 2023, attributes the expected decline in performance to a combination of investment, operational and accounting factors.
Liberty Kenya said the drop in earnings was mainly attributable to three key issues. These include a reduction in overall investment yields compared to 2024, reflecting a tougher investment environment that has affected returns on assets held by the group.
The company also pointed to an accounting loss arising from the disposal of the Group’s interest in Heritage Insurance Company Tanzania Limited. The exit from the Tanzanian market resulted in a once-off loss that weighed on the group’s consolidated performance for the year.
In addition, Liberty Kenya cited adverse claims experience during 2025, suggesting higher-than-expected claims payouts across parts of its insurance business.
Rising claims have been a challenge for insurers operating in a period marked by economic pressure and increased risk exposure.
Despite the expected fall in profits, the board sought to reassure shareholders and the wider market about the group’s underlying financial health.
The statement said that “the directors and management are pleased to highlight that the Company remains profitable, and its subsidiaries have maintained a very strong capital base and liquidity position”.
Liberty Kenya emphasised that its financial strength positions it to withstand short-term pressures while continuing to meet its obligations to policyholders and other stakeholders.
Strong capital adequacy and liquidity are critical indicators for insurers, particularly at a time of volatile investment markets and rising claims.
The board also expressed confidence in the group’s future prospects, pointing to ongoing strategic initiatives aimed at improving performance.
“The Board is confident that the current strategic initiatives will strengthen the Group’s performance and position it for long-term growth and continued value creation for all stakeholders,” the statement said.
The profit warning was issued for the information of investors and the general public and signed by the company’s chairman, Richard Etemesi, by order of the Board.
Under Kenyan capital markets rules, listed companies are required to issue a profit warning when they expect a material decline in earnings, to ensure timely disclosure and protect investors from being misled.
Liberty Kenya also included a regulatory disclaimer, noting that the announcement had been issued with the approval of the Capital Markets Authority.
It added that as a matter of policy, the Capital Markets Authority assumes no responsibility of the correctness of the statements appearing in this announcement.
The disclosure comes at a time when insurers and financial services firms across the region are grappling with lower investment returns, heightened claims and strategic restructuring as they adapt to changing market conditions.
While the expected earnings decline represents a setback compared with 2024, Liberty Kenya’s insistence that it remains profitable and well-capitalised is likely to be closely watched by investors assessing the group’s resilience and long-term outlook.
The company said full details of its performance would be provided once the audited results for the year ended December 31, 2025 are finalised and published, in line with regulatory requirements.
