NAIROBI, Kenya, June 8 – Old Mutual Holdings PLC is seeking shareholder approval for a balance sheet restructuring plan aimed at enhancing its future ability to pay dividends and create long-term value for investors.
The proposal will be presented at the company’s 18th Annual General Meeting scheduled for June 30, 2026.
Under the plan, Old Mutual intends to reduce its share premium account and apply the amount toward accumulated losses currently reflected on its balance sheet. The move is designed to strengthen the Group’s financial position and improve flexibility for future shareholder returns.
The restructuring will not involve any cash payments to shareholders and will not affect ownership interests, operations, liquidity, cash flows, or the company’s underlying business performance.
“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,” said Old Mutual Group CEO Arthur Oginga.
“The proposal supports our ongoing efforts to optimise the balance sheet, enhance financial flexibility, and position the business for sustainable long-term growth and value creation for our shareholders.”
The proposal comes as the financial services group records improving performance across its operations in Kenya, Uganda and Rwanda.
Old Mutual has reported profits for the past two consecutive years, including a profit after tax of Sh856 million for the year ended December 31, 2025.
Despite the return to profitability, the Group continues to carry accumulated losses from previous years. As of December 2025, retained losses stood at Sh7.06 billion.
The proposed restructuring would allow Sh4.66 billion held in the share premium account to be offset against the historical losses, helping clean up the balance sheet and potentially improving the company’s ability to distribute dividends in the future.
The Board has unanimously endorsed the proposal, saying it will strengthen the Group’s financial foundation and support sustainable growth.
If approved by shareholders, the restructuring will also require confirmation by the High Court before it takes effect.
