Britam, owned by Kenya’s richest investors, absorbs losses with $45.2-million payment

Britam Holdings, a prominent diversified financial services conglomerate partly owned by Kenya’s richest investors, made a payment of Ksh6.3 billion ($45.2 million) to its asset management arm, Britam Wealth Management LLP in 2022.

The payment aims to absorb investment losses that occurred in previous years, as revealed in the company’s annual report for its 2022 fiscal year.

Britam Holdings, boasting an impressive roster of Kenya’s wealthiest investors, including Peter Munga, Jimnah Mbaru, James Mwangi, Benson Wairegi, and Jane Wanjiru Michuki, has taken this proactive step to address the losses and protect the interests of investors with portfolios managed by the asset manager.

The provisions made to absorb the investment losses are a forward-looking estimation of future outflows from the fund. By taking swift action, Britam demonstrates its commitment to shielding its brand and safeguarding its position as a major player in various sectors.

Despite facing challenges in recent years, Britain’s fiscal year 2022 results indicate signs of recovery. The company reported a profit of Ksh1.69 billion ($12.1 million), a significant improvement compared to the Ksh72 million ($520,000) earned in the previous year.

The positive outcome was achieved through cost reduction measures, although the company experienced a slight decrease in income from Ksh40.2 billion ($288.3 million) to Ksh38.2 billion ($274 million).

Britam Holdings operates in multiple countries, including Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi. Its comprehensive suite of financial services encompasses insurance, asset management, banking, and real estate.

The firm’s ability to adapt and succeed in diverse markets has solidified its reputation as a leader in the industry.

Peter Munga, a renowned Kenyan businessman and non-executive director at Britam, holds 72 million shares in the company, making him one of its largest shareholders.

Britam Holdings’ recent action to address past investment losses demonstrates its commitment to investor confidence and its proactive approach to risk management.

With its financial recovery and strengthened portfolio, the company is well-positioned to continue its growth trajectory and maintain its prominent role in Kenya’s financial landscape.