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Shareholders of Old Mutual Holdings PLC have overwhelmingly approved a major balance sheet restructuring plan aimed at restoring the company’s ability to pay dividends, marking a significant milestone in its financial recovery journey.
The resolution, passed during the insurer’s 18th Annual General Meeting held on June 30, 2026, authorizes a non-cash restructuring that will see KSh4.67 billion transferred from the company’s share premium account to offset accumulated retained losses.
The move is designed to clean up Old Mutual’s balance sheet, where retained losses stood at KSh7.064 billion as of December 31, 2025, and pave the way for the rebuilding of distributable reserves — a key requirement before dividends can be issued to shareholders.
Old Mutual Group CEO Arthur Oginga described the approval as a strong vote of confidence from investors and a crucial step toward long-term value creation.
“This is an important step in strengthening our financial position and restoring greater flexibility for future shareholder returns,” Oginga said. “It supports our broader strategy to optimize the balance sheet, enhance financial resilience, and position the business for sustainable growth.”
The restructuring forms part of a wider balance sheet optimisation programme approved by the Board in 2023, following the company’s return to profitability over the past two consecutive years.
Crucially, the transaction does not involve any cash outlay or distribution to shareholders, nor does it dilute shareholding. Investors will retain their proportional ownership, while the company’s operations, liquidity, and cash flows remain unaffected.
Analysts say the move positions Old Mutual on a faster track toward resuming dividend payments — a key concern for investors after years of financial strain.
With improving business performance and a cleaner balance sheet, the insurer is now poised to rebuild investor confidence and strengthen its standing in the region’s competitive financial services sector.
The restructuring will now be submitted to the High Court of Kenya for final approval. Once confirmed through a court order, the changes will formally take effect, setting the stage for Old Mutual’s next phase of growth — and a long-awaited return to rewarding shareholders.
