Sanlam Kenya Plc, a prominent non-bank financial services provider, has announced a strategic move aimed at safeguarding shareholder value amidst economic challenges. The company disclosed that it has restructured $27 million in loans into a Sh3 billion facility with a local banking institution during the first half of the year. This restructuring is intended to mitigate potential foreign exchange losses due to the depreciation of the Kenyan Shilling against the US Dollar.
The decision comes in the wake of a reported loss of Sh291.8 million for the same period, an increase from Sh99.1 million in losses posted last year. Sanlam attributed this loss to one-time foreign exchange losses and a cautious approach to provisioning, reflecting prudent financial management amidst the ongoing recovery from the impacts of the COVID-19 pandemic since 2020.
Despite these challenges, Sanlam reported notable growth in its gross insurance revenues, with consolidated gross written premiums reaching Sh5.9 billion, marking a 38 percent increase from the previous year. Both Sanlam General and Sanlam Life recorded significant growth in insurance revenues, with a 32 percent and 44 percent increase respectively. Additionally, investment income rose by 23 percent to Sh1.5 billion compared to the previous year.
Speaking on the firm’s performance, Sanlam Kenya Plc Group CEO, Dr. Patrick Tumbo, affirmed the company’s commitment to long-term strategic goals and highlighted their focus on sustainable profitability in the insurance sector. He emphasized that the completed debt restructuring will mitigate future forex risks, providing stability and enhancing financial resilience moving forward.
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