Old Mutual Holdings PLC shareholders have approved a major balance sheet restructuring aimed at reducing the company’s accumulated retained losses and restoring its capacity to pay dividends in the future.
The proposal was passed through a special resolution during the company’s 18th Annual General Meeting (AGM) held on June 30, 2026, marking a significant milestone in Old Mutual’s long-term financial recovery strategy.
Shareholders Approve KES 4.67 Billion Restructuring
The approved restructuring involves reducing the company’s share premium account by transferring KES 4.67 billion to offset accumulated retained losses reflected on its balance sheet.
According to the company, accumulated retained losses stood at KES 7.064 billion as of December 31, 2025.
The move is designed to strengthen the company’s financial position by rebuilding distributable reserves, an important requirement before dividend payments can resume.
CEO Says Move Strengthens Financial Position
Old Mutual Group Chief Executive Officer Arthur Oginga welcomed the shareholder approval, describing it as an important step towards creating long-term value for investors.
“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 added that the restructuring supports the company’s broader strategy of optimising its balance sheet, improving financial flexibility and positioning the business for sustainable long-term growth.
Path Towards Future Dividend Payments
The restructuring forms part of a balance sheet optimisation plan that was approved by the Board in 2023.
The company noted that the initiative follows its return to profitability over the past two consecutive financial years.
Management believes continued strong business performance, combined with the restructuring, will accelerate the rebuilding of distributable reserves and improve the company’s ability to resume dividend payments in the future.
While the approval creates the legal and accounting framework needed to restore dividend capacity, the company has not announced a specific timeline for the resumption of dividend payouts.
No Impact on Shareholders’ Ownership
Old Mutual emphasised that the restructuring is entirely a non-cash accounting exercise.
The transaction:
- Does not involve any cash payment to shareholders.
- Does not reduce the number of shares held by investors.
- Does not change shareholders’ ownership percentages.
- Does not affect the company’s liquidity or cash flows.
- Does not impact day-to-day business operations.
This means shareholders will retain the same level of ownership while the company strengthens its financial position.
Next Step: High Court Approval
Although shareholders have approved the proposal, the restructuring will only become effective after receiving confirmation from the High Court of Kenya.
The court is expected to issue an order approving the reduction of the share premium account before the accounting changes can be implemented.
Once the court grants approval, Old Mutual will proceed with applying the KES 4.67 billion against its accumulated retained losses.
Positive Signal for Investors
The approval signals growing confidence among shareholders in Old Mutual’s long-term recovery strategy.
Following two consecutive years of profitability, the company is focusing on strengthening its capital structure, improving financial resilience and laying the groundwork for future shareholder returns.
If the restructuring receives court approval and the company maintains its positive financial performance, investors could move closer to seeing the return of dividend payments after years without distributions.