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Sanlam Kenya, a listed non-bank financial solutions provider, has developed a strategic plan to enhance growth and profitability. During the firm’s 78th Annual General Meeting held on Wednesday, Sanlam Kenya Group Managing Director Dr. Nyamemba Patrick Tumbo unveiled the business plan, which aims to establish a robust growth platform through a restructured financial management strategy.
For the financial year ending December 2023, Sanlam Kenya reported a loss after tax of Ksh.127 million, a significant drop from a profit before tax of Ksh.243 million. Dr. Tumbo attributed this decline to high prevailing interest rates, which increased finance costs, necessitating the new business plan.
Despite the overall loss, the firm’s subsidiary, Sanlam Life Insurance Limited, achieved a profit after tax of Ksh.534 million, marking a 15% growth from the previous year’s restated profit after tax of Ksh.464 million. Similarly, Sanlam General Insurance Limited recorded a profit after tax of Ksh.123 million, a notable improvement from the prior year’s restated loss of Ksh.36 million after tax.
“As part of the business recovery plan, Sanlam Kenya PLC received a dividend of Ksh.150 million in 2023 and an additional dividend of Ksh.400 million in April 2024 from its subsidiary, Sanlam Life Insurance Limited,” Dr. Tumbo stated.
Strategic initiatives have been launched to sustain the profitability of Sanlam General Insurance Limited. In 2023, the subsidiary returned to profitability, posting Ksh.123 million in after-tax profits and achieving a net asset position of Ksh.193 million, up from Ksh.71 million in 2022.
“At Sanlam Kenya, we are committed to improving capital efficiency and digitising key business processes to build a resilient business and offer a competitive customer value proposition that satisfies all our stakeholders,” said Dr. Tumbo. “This approach will increase financial inclusion and enhance access to our insurance products and services.”
“We are also focused on establishing partnerships to achieve shared objectives of sustainability, financial inclusivity, and responsible leadership practices,” Dr. Tumbo added.
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