Sanlam Kenya Posts a 136 Million Loss in the First Six Months of 2020
Sanlam Kenya Plc has released their results for the half year financial reports for the first six months ended 30th June 2020, the company posted a loss before tax of Kes 136.04 million in the period ended 30th June 2020 compared to a profit before tax of Kes 937.03 million in the same period last year.
The total income recorded in the first six months was kes 4.28 billion which reflects to a 9% decline from Kes 4.68 billion that was recorded in the same period in 2019.
The decline in income in Sanlam was attributed to decline in investments and other incomes which was as a result of the economic crisis facing the country due to the worldwide pandemic COVID-19.
In addition, there was an increase in expenditure to kes 4.34 billon in the period ended 30 June 2020. This was a 16% increase from kes 3.74 billion in the same period last year. It was majorly contributed by increase in net claims which increased to kes 2.45 billion in the first six months from 1.9 million in 2019.
Sanlam however recorded a slight increase in assets in the first six months. Assets increased to kes 30.21 billion which is a 1% increase from kes 29.88 billion.
In addition, the company recorded a decline in the balance at the end of the year to kes 1.64 billion in the first six months as compared to kes 2.23 billion in the same period in 2019.
The performance of Sanlam Kenya in the first six months is attributed to the economic hardship facing the country due to COVID-19 which has seen most companies’ record losses in the country.