Listed local non-bank finance solutions provider Sanlam Kenya PLC has formulated a business plan to accelerate the firm’s growth and profitability. The business recovery plan will provide a growth platform under a restructured financial management strategy.
Speaking during the firm’s 78th Annual General Meeting held on Wednesday, Sanlam Kenya PLC Group Managing Director, Dr Nyamemba Patrick Tumbo, said the business plan has been designed to mitigate and manage operating challenges.
In the financial year that ended December 2023, Dr Tumbo said, Sanlam Kenya PLC recorded a loss after tax of Ksh127 million from a profit before tax of Ksh243 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 a profit after tax of Ksh534 million, representing a 15% growth from Ksh464 million restated profit after tax recorded in the prior year. Sanlam General Insurance Limited also recorded a profit after tax of Ksh123 million, a significant improvement from the prior year’s restated loss of Ksh36 million after tax.
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“As part of the business recovery plan, Sanlam Kenya PLC was paid a dividend of Ksh150 million in 2023 and a further dividend of Ksh400 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 Ksh123 million in after-tax profits, affirming its ability to continue as a going concern. The subsidiary is now in a net asset position of Ksh193 million, up from Ksh71 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.
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