Mr. Isaiah Gakonyo – Acting Group CFO Outlook

Story by Ayubu John photo journalist Afrimedia news
Old Mutual Holdings Plc is charting a new path toward profitability and long-term stability following a strategic reset that is now beginning to deliver results.
Speaking during a media and investor briefing, Acting Group Chief Financial Officer Isaiah Gakonyo revealed that although the Group faced revenue pressure in 2025, the second half of the year showed clear signs of recovery.
“The actions we’ve taken are already bearing fruit. The first half was challenging, but the second half reflects real improvement,” he said.
Deliberate Revenue Dip
The Group reported insurance revenue of approximately KSh 32 billion, marking a year-on-year decline that management maintains was intentional.
The drop reflects a bold strategic shift, including:
Scaling back low-margin business
Rebalancing the medical and general insurance portfolio
Exiting operations in Tanzania
Transitioning South Sudan into run-off
Gakonyo emphasized that the Group is no longer focused on volume growth, but rather on building a profitable and sustainable insurance business.
Cost Discipline Pays Off
Despite inflationary pressures of around 10%, Old Mutual successfully strengthened its cost management:
Underlying expenses declined by 3%
Overall expenses reduced by 2% year-on-year
This performance highlights improved operational efficiency at a time when many firms are grappling with rising costs.
“This is a clear demonstration of disciplined execution and operational efficiency,” Gakonyo noted.
Claims Improve, Profitability Strengthens
A significant boost to performance came from improved claims experience:
Stable claims in general insurance
Notable improvement in medical insurance
Loss ratio reduced from 82% to approximately 75–76%
However, the life insurance segment recorded higher claims due to increased mortality—an outcome the Group says reflects its continued commitment to supporting policyholders and their families.
Regional Performance: Mixed but Resilient
Performance across key markets was mixed but demonstrated resilience:
Kenya remained the primary growth driver
Rwanda recorded strong underlying growth, though impacted by currency depreciation
Uganda remained stable, supported by strength in the oil and gas insurance segment
South Sudan continued to contribute despite the gradual wind-down of operations

Comments

Post a Comment

Popular posts from this blog

Little App Launches Air Charter Service, Expanding Access to Private Aviation industry in Kenya

Image
Story by Ayubu John Afrimedia Group news Kenya’s homegrown ride-hailing platform Little Cab and a leading private aviation company, Boscovic Air Charters, popularly known as Fly Boskies, has entered into a strategic partnership  in response to the rising demand for private and executive air travel. The partnership, unveiled at a launch event attended by stakeholders in the aviation and transport sectors, is aimed at meeting the increasing need for seamless, technology-driven travel solutions. As more business executives, tourists, and high-net-worth individuals turn to charter flights for flexibility and efficiency, the collaboration seeks to deliver a fully integrated experience — from booking private flights to securing reliable airport transfers. Under the agreement, clients flying with Fly Boskies can now schedule executive pick-ups and drop-offs through the Little Cab app, ensuring smooth transitions between air and road travel. This integra...
Read more

Consortium of August 7 Victims Expresses Frustration After High Court Dismisses Compensation Claims

Image
Story by Ayubu John photo journalist from Afrimedia Group news   The High Court has dismissed a petition seeking compensation for survivors and families of the August 7, 1998 U.S. Embassy bombing, a decision that has sparked frustration and disappointment among those affected. The petitioners had argued that the Kenyan government ignored prior warnings that could have prevented the attack, which killed over 200 people and injured thousands. In his ruling, Justice Lawrence Mugambi said the petitioners failed to present credible evidence showing the State had actionable intelligence or neglected to act. Many of the reports submitted were ruled hearsay, as the authors did not testify in court. “The burden of proof lies on those who seek the court’s intervention,” Justice Mugambi emphasized. Strong Reaction from Victims’ Representatives The Consortium of August 7 victims, which represents survivors and families affected by the bombing, described...
Read more

Savannah Honey Unveils Africa’s First Bee Venom Marketplace

Image
Story by Ayubu John photo journalist Afrimedia Group news  Kenya’s apiculture sector has received a major boost following the launch of Africa’s first organized Bee Venom Marketplace by Savannah Honey, in an event officiated by Wycliffe Oparanya, Cabinet Secretary for Cooperatives and MSMEs. The initiative marks a strategic shift from traditional honey production to high-value bee products such as venom, propolis, pollen, royal jelly and beeswax — positioning Kenya to tap into a global bee venom market currently valued at about US$370 million. Savannah Honey CEO Kyalo Mutua said African farmers have long been unable to benefit from bee venom due to lack of structured markets, quality standards and coordination. The new marketplace aims to address these challenges by offering standardized collection methods, farmer training, traceability systems and guaranteed market access. Under the model, a single hive can produce up to 10 grams of venom annual...
Read more