Britam Cuts Share Premium Account by KSh5.88 Billion, Eliminating Accumulated Losses

Britam Holdings PLC has completed the KSh5.88 billion reduction of its share premium account after securing the required shareholder, court, and regulatory approvals.

In a notice dated September 8, Britam said the reduction, which took effect on September 7, 2026, lowered its share premium account from Ksh 13.24 billion to Ksh 7.36 billion.

“Further to the public announcement issued by Britam Holdings PLC (Company) on 30 March 2026 in respect of the proposed reduction of the Company’s share premium account by Ksh 5,875,252,000 from Ksh 13,237,451,000 to Ksh 7,362,199,000 (Share Premium Reduction), the board of directors of the Company is pleased to announce to its shareholders and the investing public that the Share Premium Reduction became effective on 7 September 2026,” read part of the notice.

Britam Share Premium Reduction Approved by Shareholders

The company said the reduction corresponds with the elimination of accumulated losses but does not affect shareholders’ holdings, total equity, net assets or the company’s underlying financial position.

“The Board confirms that the Share Premium Reduction has not resulted in any change in the shareholding of the Company. Shareholders continue to hold the same number and class of shares as before the Share Premium Reduction.”

According to the notice, Britam had previously announced the proposed reduction on March 30, 2026, before completing the necessary legal processes.

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The Board said the transaction was undertaken in compliance with the Companies Act and did not result in any change to the company’s shareholding structure.

Britam said the reduction followed several steps involving Britam shareholders, the High Court and the Registrar of Companies.

On May 21, 2026, shareholders approved the reduction through a special resolution.

Thereafter, on July 30, 2026, the High Court issued an order confirming the share premium reduction and approving the statement of capital reflecting the company’s capital structure after the transaction.

The Registrar of Companies subsequently registered the court order and statement of capital on September 7, 2026, making the reduction effective that same day.

Company Clarifies Impact of Share Premium Reduction

Furthermore, Britam said the reduction in the share premium account corresponds with the elimination of accumulated losses.

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The company clarified that the transaction did not negatively affect its total equity or net assets and that its underlying financial position remains unchanged.

Britam also confirmed that the transaction did not alter the number or class of shares held by its shareholders.

The company said the move was undertaken to adjust its capital structure while eliminating accumulated losses without affecting its underlying financial position.

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Britam Holdings PLC
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