Shareholders of Old Mutual Holdings have approved the planned restructuring of the accounts books to reduce accumulated losses by restoring the company’s capacity to resume payment of dividends.

The shareholders passed the special resolution during the company’s 18th Annual General Meeting held on June 30, 2026.

According to a press release, the restructuring will see Ksh4.67 billion transferred from the company’s share premium account to offset part of its accumulated retained losses, which stood at Ksh7.064 billion as at December 31, 2025.

Old Mutual Group Chief Executive Officer Arthur Oginga said the approval marks a key milestone in strengthening the company’s financial position and enhancing its ability to deliver long-term value to shareholders.

“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.

He noted that the initiative would optimize the company’s balance sheet, improve financial flexibility and support sustainable long-term growth.

The restructuring is part of a balance sheet optimisation plan approved by the Board in 2023 and follows the company’s return to profitability over the past two years. The move will help rebuild distributable reserves and accelerate the resumption of dividend payments.

The company clarified that the transaction does not involve any cash payment to shareholders, will not alter shareholders’ ownership or the number of shares held, and will have no impact on the company’s operations, liquidity or cash flows.

The restructuring will now be submitted to the High Court of Kenya for approval before it becomes effective.

• A Tell Media / KNA report / By Wangari Ndirangu