- The transaction involves no cash payments or distributions to shareholders, meaning it will not alter the number of shares held by investors or dilute their proportionate ownership of the company
Old Mutual Holdings PLC shareholders have approved a non-cash balance sheet restructuring plan that will wipe out billions of shillings in accumulated losses and clear the path for the insurer to resume paying dividends to its investors.
The resolution was passed during the company’s 18th Annual General Meeting held on Tuesday, June 30, 2026, with shareholders backing a proposal to draw KSh4.67 billion from the group’s reserves to offset a portion of its historical retained losses, which stood at KSh7.064 billion as at December 31, 2025.
Old Mutual Group CEO Arthur Oginga said the shareholder approval demonstrated confidence in the company’s turnaround strategy.
“The approved proposal reflects the shareholder support for the group’s ongoing efforts to strengthen its financial support and create long term value,” Oginga said.
He described the move as part of a broader balance sheet optimisation programme that the board had approved back in 2023, saying it was a critical step toward restoring financial flexibility and positioning the business for sustainable growth.
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“The approved proposal by the shareholders marks a way of supporting the ongoing efforts as a way of optimizing the balance sheet, enhancing financial flexibility and positioning the business for a sustainable long term growth and value creation,” he added.
The restructuring comes on the back of two consecutive years in which Old Mutual returned to profitability, a performance the company says, will help rebuild its distributable reserves and hasten its return to paying dividends to shareholders.
The transaction involves no cash payments or distributions to shareholders, meaning it will not alter the number of shares held by investors, dilute their proportionate ownership of the company, or have any bearing on the group’s operations, liquidity position, cash flows, or underlying business.
By Jonathan Mwinzi
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