Sanlam Kenya PLC, a prominent non-banking financial services company, has unveiled plans for a Rights Issue aimed at raising Ksh 2.5 billion. Set to open on April 25, 2025, and close on May 12, 2025, the initiative is poised to reinforce the company’s financial standing by recapitalizing its balance sheet.
The Rights Issue has received the necessary regulatory approvals from the Capital Markets Authority (CMA), Nairobi Securities Exchange (NSE), Insurance Regulatory Authority (IRA), and the South African Reserve Bank (SARB). Shareholders had previously given approval for the move during an Extraordinary General Meeting (EGM) late last year.
Dr. John Simba, Chairman of Sanlam Kenya, explained that the funds from the Rights Issue would be primarily used to pay down a loan facility with Stanbic Bank Kenya Plc. This, he said, would lower the company’s long-term debt, reducing financing costs. Additionally, part of the capital raised will offer management the flexibility to drive the company’s growth and enhance profitability.
All registered shareholders of Sanlam Kenya holding ordinary shares are eligible to participate in the Rights Issue. Dr. Nyamemba Patrick Tumbo, the CEO of Sanlam Kenya, emphasized that the entire Rights Issue is underwritten by Sanlam’s parent company, Sanlam Allianz Africa Proprietary Limited. This means that any unclaimed rights after shareholder allocation will be absorbed by the parent company.
The company’s strategic focus in recent years has been on optimizing its capital structure, retiring debt, and streamlining operations. Efforts to divest from non-core assets, such as real estate, have allowed Sanlam Kenya to concentrate on its core insurance business, positioning it for growth. Dr. Tumbo further highlighted that the company aims to drive growth through innovation, partnerships, and effective capital management, ensuring sustainable shareholder returns in the long term.
With its strengthened balance sheet and a clear growth strategy, Sanlam Kenya is setting a strong foundation for the future.
