Sanlam Kenya pivots to financial engineering for growth drive
Sanlam Kenya is rolling out a fresh business plan to accelerate the firm’s growth and profitability. In the new strategy, the Nairobi Securities Exchange company seeks to accelerate growth under a restructured financial management strategy.
Sanlam Kenya PLC Group Managing Director Dr Nyamemba Patrick Tumbo said the business plan has been designed to mitigate and manage operating challenges. Dr Tumbo was speaking during the firm’s 78th Annual General Meeting held on Wednesday.
In the financial year that ended December 2023, Dr Tumbo said, Sanlam Kenya PLC recorded a loss after tax of Kes127 million from a profit before tax of Kes243 million, necessitating the formulation of the business plan. The decline in earnings, he explained, was due to the prevailing high interest rates leading to increased finance costs.
However, the firm’s subsidiary Sanlam Life Insurance Limited recorded net earnings of Kes534 million, representing a 15 percent growth from the Kes464 million restated profit after tax recorded in the prior year.
At the same time, Sanlam General Insurance Limited posted a profit after tax of Kes123 million, a significant improvement from the prior year’s restated loss of Kes36 million after tax.
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“As part of the business recovery plan, Sanlam Kenya PLC was paid a dividend of Kes150 million in 2023 and a further dividend of Kes400 million paid in April 2024 from its subsidiary Sanlam Life Insurance Limited,” Dr Tumbo said.
Strategic efforts have also been activated to sustain Sanlam General Insurance Limited’s profitability. The subsidiary returned to profitability in 2023, posting Kes123 million in after-tax profits, affirming its ability to continue as a going concern. The subsidiary is now in a net asset position of Kes193 million, up from Kes71 million posted in 2022.
“At Sanlam Kenya, we are dedicated to improving capital efficiency and digitizing key business processes to build a resilient business and provide a competitive customer value proposition to the satisfaction of all our stakeholders. This will increase financial inclusion and enhance access to our insurance products and services.” Dr Tumbo also stated, “We are deliberate in our efforts to establish partnerships in order to achieve shared objectives of sustainability, financial inclusivity and responsible leadership practices.”
