Old Mutual Holdings PLC shareholders have approved a non- cash balance sheet restructuring aimed at reducing the historical accumulated retained losses and restore the Company’s capacity to pay dividends.
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| From left: Old Mutual Group CEO Arthur Oginga, Old Mutual Group Chairman Dr. Habil Olaka, Old Mutual Group Company Secretary and Legal Counsel Nannette Miingi, and Old Mutual Ag. Group Chief Finance Officer Isaiah Gakonyo during Old Mutual Holdings PLC’s 18th Annual General Meeting. |
Shareholders approved the proposal by special resolution during the Company’s 18th Annual General Meeting held on Tuesday, 30 June 2026. The restructuring involves the reduction of the Company’s share premium account by transferring Kes. 4.67 billion from the account and the application of the amount towards accumulated retained losses currently reflected on the balance sheet. As at 31 December 2025, the accumulated retained losses stood at KES 7.064 billion.
Old Mutual Group CEO Arthur Oginga said the approval reflects shareholder support for the Group’s ongoing efforts to strengthen its financial position and create long-term value.
“This is an important step in strengthening our financial position and restoring greater flexibility for future shareholder returns as the business continues to grow and deliver sustainable performance. The approval by shareholders supports our ongoing efforts to optimise the balance sheet, enhance financial flexibility, and position the business for sustainable long-term growth and value creation,” Mr Oginga said.
This initiative is part of a balance sheet optimisation plan approved by the Board in 2023 and is being implemented following the Company’s return to profitability over the past two consecutive years. Continued positive business performance and the execution of this balance sheet initiative will support the rebuilding of distributable reserves and accelerate the Company’s path towards the resumption of dividend payment.
The transaction does not involve any cash payment or distribution to shareholders, does not result in any reduction in the number of shares held by shareholders, and does not affect shareholders’ proportionate ownership of the Company. It also has no impact on the Company’s operations, liquidity position, cash flows, or underlying business performance.
Following shareholder approval, the transaction will now proceed to the High Court of Kenya for confirmation through issuance of a court order before it becomes effective.
About Old Mutual Holdings
Old Mutual East Africa Group is a leading provider of comprehensive financial services, including insurance, investment, banking, and savings solutions. As part of Old Mutual Limited (OML), a premier African financial services group with a presence in 12 countries, we combine local expertise with global experience to serve diverse client needs, leveraging advanced technology and world-class financial insights. Our operations span across Kenya, Uganda, South Sudan, and Rwanda, where we offer a wide range of financial services through an integrated business model. This includes life and general insurance, investment management, and banking services provided through Faulu Microfinance Bank. We manage a KES 20 billion property portfolio that includes iconic buildings such as Equatoria Tower (South Sudan), Nakawa Business Park (Uganda), and Old Mutual Tower (Kenya).