Event: Liberty Kenya Holdings Plc 15th AGM

Date: 18 June 2020

LIBERTY KENYA HOLDINGS PLC – 15TH ANNUAL GENERAL MEETING

Where is the AGM venue? In compliance with the Government directives restricting movement and gatherings,
a physical AGM would not have been possible. The AGM was therefore held through
electronic means.
Will I attend the meeting? Shareholders participated in the AGM through an online livestream through links
sent to their registered mobile numbers. The process for participation was provided
in detail in the AGM Notice published in the local dailies and on the Company’s
website.
What measures have you taken to control the effects of COVID- The Covid-19 pandemic has affected all businesses globally. Locally, there have
19 pandemic in the business? been several interventions taken by businesses and regulators to mitigate this
impact. The Company has incorporated guidelines provided by the Government
and adopted a raft of measures to protect our staff, customers and stakeholders
from the effects of the pandemic. We have implemented business continuity
plans and have undertaken business modelling with the worst case scenario in
mind. The organization has prepared itself to operate under these adverse
circumstances to the benefit of our customers and shareholders. About 20% of
the staff come to the office, the rest being able now to work remotely, mostly
from home.

How are we going to get gifts? In view of the current circumstances, and in accordance with the increasing trend to
dispense with this item, there will be no gifts.
What is the dividend rate and how is it determined? This is in line with the dividend policy and availability of distributable profits.

a) Is there dividend this year? No dividend was recommended by the directors for the year ended 31st December
2019 and this was approved by the shareholders.
b) How are going to receive the dividends declared?
c) Dividend is how much per share?
d) When are dividends being paid?
Can I receive dividends by MPESA? The Company has an option for you to receive your future dividend through MPESA.
Kindly reach out to our Registrars:
Image Registrars Limited 5th floor Absa Towers (formerly Barclays Plaza)
Loita Street P.O. Box 9287 – 00100 Nairobi
Email: [email protected]
Telephone: 0709 170000/ 0724 699667/0735 565666
Why can’t the board issue bonus shares to shareholders? In 2014, the final dividend of Kes 1/- was paid either as a scrip or cash (as opted by
the shareholder). At this stage, there does not appear to be a business case for bonus
shares.
How do you determine directors’ remuneration? The remuneration of the non-executive directors is reviewed periodically by the
Board Directors’ Affairs Committee. Liberty participates in an independent
remuneration survey and then also benchmarks to the industry to the extent that
information is available. Remuneration comprises a retainer and attendance fees.
a) Where do I cash my previous dividend? Prior year dividends were paid via cheque sent to your registered email address. If
you did not receive your cheque or it has not been banked, please reach out to
b) Can I get all my previous dividend via MPESA?
Registrars to guide you on the process of receipt of any unpaid dividends:
c) I received a dividend cheque after 6 months and returned it
Image Registrars Limited 5th floor Absa Towers (formerly Barclays Plaza)
to Comprite but I haven't been issued with a replacement
Loita Street P.O. Box 9287 – 00100 Nairobi
Email: [email protected]
Telephone: 0709 170000/ 0724 699667/0735 565666
 Please note that dividends paid prior to 2016 were declared to the Unclaimed
Financial Assets Authority as required by the law. To claim any such dividends
please contact the:
Unclaimed Financial Assets Authority
Pacis Centre, 2nd Floor
Slip Road, Off Waiyaki Way, Westlands
P O Box 28235-00200 Nairobi
Telephone: 020 4023000/0706866984/0736559152
Email: [email protected]
When do we expect to get dividends because same to last year The Company declared a first and final dividend for the year 2018 of Kes 0.50/- per
we did not get dividend yet we have injected equity into the ordinary share and it paid to shareholders registered as at close of business on 7 June
company? 2019. No new capital was raised by the company last year.
When is the last time Liberty paid dividends to shareholders? The Company declared and paid to shareholders a first and final dividend for the year
Other than dividends, can the company consider something 2018 of Kes 0.50/- per ordinary share in 2019. Please contact our Customer Service
like some little special discounts on company products for for more information on the products you would like and the pricing thereof:
shareholders? Liberty Life Assurance
Contact Centre
Telephone: 0711 076 222/ 020 2866000/0711 028 000
Email: [email protected]
Heritage Insurance Kenya
Contact Centre
Telephone: 020 2783000/0711 039 000/0734 101 000
Email: [email protected]

There’s no dividends despite making profit. Why? you should Whilst 2019 was a successful year for Liberty Kenya Holdings, the uncertainty and
come to the rescue of shareholders at this time of distress. volatility introduced to equity markets as a result of the coronavirus pandemic
together with operational disruptions demands that our operating companies retain
capital to meet likely future obligations. As such, the Board resolved not to
recommend a dividend. Furthermore, the regulators of financial institutions have
encouraged companies to retain capital.
Please explain the Company’s dividend policy. In determining the level of dividend payment, which will be subject to the capital
adequacy of the Company, the regulatory capital adequacy requirements,
Company’s projected performance and capital needs, liquidity, current cash flow and
financial position and business plan and investment capital requirements are all
considered.

Please comment on the company’s performance over the last Please review the Integrated Report which sets out the successes of the company
12 months. What worked and what would you do differently and its subsidiaries, culmination in receiving both life and general insurer of the year
this year? industry awards. The Company recorded a 5% growth in earned premium and a 66%
increase in total investment income translated into a 35% increase in profit after tax,
lifting our earnings per share to Kes 1.31 (2018: Kes 0.92) and our return on equity
to 9.5% (2018: 7.5%). The bottom-line growth was driven largely by a 62% growth in
earnings from Heritage Kenya. Liberty Life performed satisfactorily in a very
competitive environment. The setting of our strategy for the next three years is
detailed in our strategy section from page 16 of the Integrated Report.

Don’t increase your salaries during this pandemic to ensure Remuneration of staff is both fixed and variable. Any adjustments are made taking
the company profit doesn't go down because we understand into account business performance and prevailing market conditions
currently almost all businesses are not performing well due to
lack of opportunities.
What is the Board’s plan to improve diversity in the Board? As and when vacancies arise, the Board considers individuals to balance the skill sets
required to provide oversight to the Group and also consider any material changes
in strategy that may require additional expertise. This process is undertaken though
the Directors Affairs Committee.
How can I join the Board? For one to join the Board, they need to meet the qualifications set out in the Articles
of the Company and the Companies Act of 2015. Additionally, you also have to be
nominated by the Board and recommended for approval by shareholders in an AGM.

Last year you indicated that you would get more involved in Please review the details in our strategy section commencing on page 16 of the
technology but that hasn't been any implementation in the Integrated Report. In particular, we are specifically focusing our attention on how we
market, yet we would have benefited from this period, why
not acquire one of the small efficient online insurance can best use technology to support the access of products, information and support
companies coming up. services for the benefit of our customers.
By way of example, Heritage has the most technologically advanced motor insurance
product available in the market, Auto Correct. Please contact Heritage Kenya for
more details.
Following the COVID-19 outbreak, the Liberty Kenya Group quickly embraced its
technological capability to enable the majority of our employees to work from home
whilst ensuring continued business operation and customer services. There have
been various important initiatives, some still in progress to improve the use of
technology.
I have attended the previous physical annual meetings of the This year, shareholders were provided an opportunity to forward their questions
company and there is a tendency to ignore questions and rush prior to the meeting and during the AGM livestream session. All questions that were
over the meeting without giving shareholders time to forward not attended to in the AGM, have been answered and posted on the Company’s
questions. This is not a behavior to be encouraged, if warren website.
buffet, chairperson of Berkshire the most valuable insurance
has a whole day to answer shareholder questions why is it
hurried in our local scenario.