Old Mutual profit after tax up 2pc to Sh856mn

Old Mutual Kenya has reported a marginal 2% increase in profit after tax, reaching Sh856 million (approximately €6.4 million) in its latest financial period, up from Sh838 million in the prior year. While the growth trajectory appears modest on the surface, the underlying performance metrics reveal important dynamics within East Africa's competitive insurance sector that merit closer examination for foreign investors. The insurer's profit before tax stood at Sh1.9 billion, suggesting an effective tax rate of approximately 45%, which is notably elevated compared to global insurance industry standards of 25-35%. This discrepancy warrants investigation into Kenya's corporate tax environment and whether Old Mutual faces additional regulatory or compliance costs specific to its operational structure in the market. **Market Context and Competitive Landscape** Kenya's insurance sector has undergone significant transformation over the past decade, characterized by increased competition from both traditional players and emerging insurtech platforms. Old Mutual, as a multinational with operations across Southern Africa, brings substantial capital and expertise to the Kenyan market, yet the modest profit growth suggests the company faces headwinds common to many established insurers in developing markets: margin compression, rising customer acquisition costs, and regulatory compliance expenses. The 2% growth rate, while appearing sluggish, must