Sanlam Kenya adopts financial engineering strategy to accelerate growth and profitability

Speaking during the firm’s 78th Annual General Meeting held on Wednesday, Sanlam Kenya Group Managing Director Dr Nyamemba Patrick Tumbo said the business plan will provide a growth platform under a restructured financial management strategy.

In the financial year that ended December 2023, Dr Tumbo said, Sanlam Kenya recorded a loss after tax of Ksh.127 million from a profit before tax of Ksh.243 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 Ksh.534 million, representing a 15% growth from the Ksh.464 million restated profit after tax recorded in the prior year.

Sanlam General Insurance Limited also recorded a profit after tax of Ksh.123 million, a significant improvement from the prior year’s restated loss of Ksh.36 million after tax.

“As part of the business recovery plan, Sanlam Kenya PLC was paid a dividend of Ksh.150 million in 2023 and a further dividend of Ksh.400 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 Ksh.123 million in after-tax profits, affirming its ability to continue as a going concern. The subsidiary is now in a net asset position of Ksh.193 million, up from Ksh.71 million posted in 2022.

"At Sanlam Kenya, we are dedicated to improving capital efficiency and digitising 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."