Centum Investment Company has successfully eliminated all debt at its holding company level, marking the end of a comprehensive balance sheet restructuring programme initiated in 2020.
According to the company’s latest financial disclosures for the year ending March 2026, Centum closed the period with zero debt, a significant turnaround from Sh690 million owed the previous year and Sh1.95 billion in 2024. The company’s debt had peaked at Sh7.48 billion in 2020 and Sh16.14 billion in 2019.
At the group level, however, total borrowing only decreased marginally to Sh17.08 billion from Sh17.85 billion, indicating that some subsidiaries and associates continue to hold credit facilities.
CEO Highlights Financial Flexibility and Growth Focus
Centum CEO James Mworia emphasized that clearing debt at the holding company stage grants the firm greater financial flexibility to enhance shareholder returns and pursue new investments.
He stated, "The balance sheet restructuring programme that commenced in 2020 has now been successfully completed. Management's focus now shifts towards accelerating cash generation, expanding recurring annuity income, recycling capital efficiently across the portfolio, and progressively enhancing shareholder returns."
Profit and Dividend Performance
The group reported an 8.4% dip in net profit to Sh743.91 million from Sh812.81 million the previous year. Conversely, the holding company’s net profit surged 87% to Sh1.02 billion from Sh547.13 million.
Centum explained that consolidated group earnings reflect businesses at varying investment stages, which may not align with cash distributions received by the holding company, accounting for the disparity in profits.
The firm has proposed a dividend payout comprising an ordinary dividend of Sh0.42 per share (totaling Sh281 million) and a special dividend of Sh0.36 per share (Sh240 million). This combined distribution, pending approval at the upcoming annual general meeting, is 2.5 times higher than last year’s ordinary dividend of Sh0.32 per share (Sh210 million).
Mr Mworia noted, "The special dividend reflects the successful realisation into cash of value created across the portfolio over a number of years. Centum frequently recognises increases in value through fair value movements before those gains are ultimately realised through strategic transactions or investment exits."
