Liberty Kenya Holdings Plc has announced plans to issue a special dividend of KSh 0.60 per share, tied to the proceeds of the sale of its 60% stake in Heritage Insurance Tanzania Limited.
Proposal comes ahead of the company’s 20th Annual General Meeting (AGM) slated for 23rd May 2025, where shareholders will vote to approve the move alongside other agenda items.Liberty Kenya’s footprint has been purposefully repositioned through the divestiture in order to streamline operations and strengthen its emphasis on the Kenyan market.The exit from Tanzania comes against a backdrop of rising competition and regulatory complexity in that country’s insurance sector.
Heritage Insurance Tanzania, valued at a book worth of KSh 969 million as of December 2023, has been a part of Liberty Kenya’s regional portfolio for more than 25 years.
However, the unit has faced increasing challenges, including a major KSh 4 billion claim from a mining company, which — though largely covered by reinsurance — highlighted operational risks in the foreign market.
By divesting, Liberty Kenya aims to:
➖ Reduce legal and operational risks
➖ Unlock capital from non-core assets
➖ Sharpen its focus on its home market in Kenya
➖ Improve shareholder returns through special payouts
“The special dividend reflects our commitment to pass on value realised from the sale of Heritage Tanzania directly to shareholders,” the company noted in its AGM circular.
A local investment company called Mac Group Tanzania owns the remaining 40% of Heritage Insurance Tanzania.
In recognition of its improved financial performance and the Tanzania exit, Liberty Kenya’s board has proposed a generous payout for shareholders. If approved at the AGM, investors will receive:
Normal dividend: KSh 1.00 per share (inclusive of KSh 0.50 linked to FY2024 performance)Special dividend: KSh 0.60 per share from the Heritage Tanzania saleTotal payout: KSh 1.60 per share
This proposed payout marks one of the highest combined dividends in the Group’s recent history.
Book Closure: 14th June 2025
Payment Date: On or before 24th August 2025