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Britam reverses Sh877 million paper losses in HF investment
HF Group head office along Kenyatta Avenue, Nairobi. HF has been on a recovery path, with the net profit for the year ended December 2025 more than doubling to Sh1.42 billion from Sh524 million
Britam Holdings has reversed a previous impairment or reduction in the value of its investment in its banking associate HF Group to the tune of 877.94 million, citing the lender’s improved financial performance and turnaround due to fresh capital injection.
The insurer disclosed through its latest annual report that it implemented the latest write back in the financial year ended December 2025, contributing to the rise in the value of its 49.89 percent stake in HF to Sh9.36 billion compared to the previous year’s Sh4.09 billion.
“The group’s impairment assessment of the investment in HF Group Plc resulted in Sh877,947,000 impairment reversal as at December 31 2025,” the company says.
“The indicators that were generally considered are the improvements in 2025 and 2024 performance compared to prior years, and the turnaround due to capital injection through a successful rights issue in the previous year.”
In 2024 Britam had also implemented a write-back on its stake investments the mortgage lender to the tune of Sh2.09 billion, citing improved financial performance of the lender.
The group’s chief executive, Tom Gitogo, told Business Daily that the impairment reversals were recognised following a measurable improvement in HF Group’s financial performance and outlook compared to the periods when impairments were initially recorded.
Britam increased its stake in HF to 49.89 percent in 2025 from 48.17 percent in 2024 after acquiring additional shares in a Sh355.4 million investment, according to the annual report.
Britam’s 2024 impairment reversal on HF investment was the first since the Sh172.06 million in 2021 when the lender started recovering after the Covid-19 pandemic disruptions.
HF has been on a recovery path, with the net profit for the year ended December 2025 more than doubling to Sh1.42 billion from Sh524 million a year earlier on the back of increased lending to the government.
In 2023 Britam halted its plans to sell its entire stake in HF after the associate returned to profitability.
Britam had in March 2021 announced it was looking to sell its ownership in HF, which had been making losses for years. Britam initially bought into HF as a means of expanding in the real estate and mortgage industry.
