Shareholders of Old Mutual Holdings PLC have approved a non-cash balance sheet restructuring aimed at reducing the company’s historical accumulated retained losses and restoring its capacity to pay dividends.
The approval was granted through a special resolution during the company’s 18th Annual General Meeting held on Tuesday, June 30, 2026.
Under the restructuring, Old Mutual will reduce its share premium account by transferring Ksh4.67 billion from the account and applying the amount towards accumulated retained losses reflected on its balance sheet.
As of December 31, 2025, the company’s accumulated retained losses stood at Ksh7.064 billion.
Old Mutual Group Chief Executive Officer Arthur Oginga said the approval demonstrated 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,” Oginga said.
“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,” he added.
The company noted that the initiative forms part of a balance sheet optimisation plan approved by the Board in 2023.
It is being implemented following Old Mutual’s return to profitability over the past two consecutive years.
According to the company, sustained positive business performance, together with the execution of the balance sheet initiative, is expected to support the rebuilding of distributable reserves and accelerate its path towards the resumption of dividend payments.
Old Mutual clarified that the transaction does not involve any cash payment or distribution to shareholders.
It will also not result in any reduction in the number of shares held by shareholders or affect their proportionate ownership in the company.
The company further stated that the restructuring will have no impact on its 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 the issuance of a court order before it becomes effective.
