Listed non-banking financial services firm, Sanlam Kenya Plc, has received regulatory approval to launch a rights issue aimed at raising KES 2.5 billion. The approval comes from the Capital Markets Authority of Kenya (CMA), the Nairobi Securities Exchange (NSE), the Insurance Regulatory Authority (IRA), and the South African Reserve Bank (SARB). The rights issue will open on Friday, April 25, 2025, and close on Monday, May 12, 2025.
This initiative follows shareholder approval granted during an Extraordinary General Meeting (EGM) last year, where the recapitalization of the company’s balance sheet was prioritized to enhance profitability.
According to the company’s Chairman Dr. John Simba, the funds raised will primarily be used to settle a loan facility from Stanbic Bank Kenya Plc, while also providing operational flexibility to support the firm’s growth ambitions.
Sanlam’s Recent Financial Performance.
Sanlam has been making strides in improving its financial performance. In 2024, the company reported a profit after tax of KES 1.05 billion, a significant turnaround from the KES 127 million loss recorded in 2023.
This improvement was attributed to better underwriting profits, improved loss ratios, and stronger investment results. Sanlam Life Insurance Limited, a subsidiary, recorded a profit after tax of KES 1.3 billion in 2024, representing a 158% growth compared to the previous year.
Read: KCB & NBK Sign Distribution Deal with Sanlam Life Insurance
The rights issue is fully underwritten by the firm’s parent company, Sanlam Allianz Africa Proprietary Limited, which has committed to purchasing any unallocated rights. Dr. Tumbo, Sanlam Kenya’s CEO, emphasized that the early repayment of the Stanbic Bank facility will reduce long-term debt levels, saving on financing costs and strengthening the company’s balance sheet. He also highlighted the firm’s focus on pioneering inclusive financial confidence by investing in diversified non-bank financial services.
The transaction is led by a team of advisors, including Absa Bank (Kenya) Plc, Absa Securities Limited, Anjarwalla & Khanna LLP, KPMG Kenya, Stanbic Bank Kenya Plc, Image Registrars Limited, and Oxygène MCL.
Dr. Tumbo said, Sanlam has been restructuring its debt portfolio, divesting from non-core assets, and focusing on its core insurance business to ensure better returns for shareholders. These efforts have positioned Sanlam Kenya as a resilient player in the financial services sector.”
