Old Mutual Holdings Plc has announced a planned alteration to its capital structure to address accumulated negative retained earnings of Ksh 7,064,040,000 as at 31 December 2025.
According to a notice issued on June 8, Old Mutual Holdings said the announcement follows a Board of Directors meeting held on 29 May 2026 and is issued in line with the Capital Markets Act and related disclosure regulations governing listed firms in Kenya.
“The Board of Directors of Old Mutual Holdings Plc (the “Company”) wishes to notify the Capital Markets Authority, shareholders and the general public that at the Board of Directors meeting held on 29th May 2026, the Board approved the commencement of a phased balance sheet restructuring designed to eliminate the Company’s accumulated negative retained earnings of KES 7,064,040,000 as at 31 December 2025,” the notice read in part.
The company’s legal secretary, Nannette Milingi, said the phased balance sheet restructuring is intended to eliminate accumulated losses and strengthen its financial position.
Additionally, the notice stated that the move supports its long-term objective of restoring capacity to pay dividends after improvements in financial performance.
First Phase: Share Premium Reduction Plan
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In the first phase, Old Mutual Holdings will seek a court-approved reduction of its share premium account amounting to KSh 4,664,801,000.
If approved, the adjustment will reduce accumulated losses from KSh 7,064,040,000 to approximately KSh 2,399,239,000 through an internal accounting offset.
The company clarified that this process will not involve any cash payments, shareholder distributions, or reduction in issued shares.
This exercise will require approval by shareholders through a special resolution and confirmation by the High Court of Kenya under the Companies Act, 2015. It remains subject to regulatory and corporate approvals.
“As a public company, this process will require shareholder approval by special resolution and confirmation by the High Court of Kenya under the Companies Act, 2015,” the Group Company Secretary said.
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Second Phase: Further Balance Sheet Measures
In the second phase, the board will consider additional options to address the remaining shortfall and will issue further updates in accordance with the Capital Markets (Public Offers, Listings and Disclosures) Regulations, 2023.
The company cautioned shareholders that the outcome, timing, and full impact of the restructuring remain uncertain pending approvals.
Shareholders and investors are advised to take note of the announcement when dealing in the securities of Old Mutual Holdings Plc.
“Accordingly, shareholders and the investing public are advised to take note of the above information when dealing with Old Mutual Holdings Plc Securities,” the company advised.
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