NAIROBI, Kenya- In a bid to accelerate growth and profitability, Sanlam Kenya PLC has rolled out a comprehensive business recovery plan.
This strategy aims to revamp the firm’s financial management and address operating challenges head-on, according to Dr. Nyamemba Patrick Tumbo, Group Managing Director of Sanlam Kenya PLC, during their 78th Annual General Meeting.
Turning the Tide: From Losses to Gains
Sanlam Kenya’s latest financial results have been a wake-up call.
For the fiscal year ending December 2023, the company reported a post-tax loss of Kshs 127 million, a sharp contrast to the previous year’s pre-tax profit of Kshs 243 million.
Dr. Tumbo attributed this decline to the high interest rates, which have driven up finance costs.
In response, the company has crafted a robust business plan to mitigate these challenges and steer the firm back to profitability.
In brighter news, Sanlam Kenya’s subsidiaries have shown impressive performance.
Sanlam Life Insurance Limited posted a profit after tax of Kshs 534 million, marking a 15pc increase from the Kshs 464 million recorded the previous year.
Sanlam General Insurance Limited bounced back with a profit after tax of Kshs 123 million, a significant turnaround from a loss of Kshs 36 million the previous year.
Strategic Dividends and Financial Management
Part of the recovery strategy involves strategic dividend payments.
In 2023, Sanlam Kenya PLC received a Kshs 150 million dividend from Sanlam Life Insurance Limited, followed by another Kshs 400 million in April 2024.
These payments are crucial for bolstering the company’s financial stability and supporting ongoing recovery efforts.
Sanlam General Insurance Limited’s return to profitability has been particularly noteworthy.
The subsidiary now boasts a net asset position of Kshs 193 million, up from Kshs 71 million in 2022.
Dr. Tumbo emphasized the importance of building a resilient business model and delivering a competitive customer value proposition.
“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,” he said.
The company also aims to boost financial inclusion and broaden access to its insurance products and services through strategic partnerships.
These efforts align with Sanlam Kenya’s broader goals of sustainability, financial inclusivity, and responsible leadership practices.
