Sanlam Kenya Plc announced Tuesday that its 2023 earnings are projected to decline by at least 25% compared to 2022, sending a profit warning to shareholders.
The financial services company said in a statement that “based on the current unaudited financial results, the Board of Directors of the Company are of the view that the Company’s projected earnings after tax for the year ending 31st December 2023 are at least 25% lower than the earnings after tax reported for the year ended 31st December 2022.”
Board Chairman Dr. John PN Simba attributed the projected profit decline to “the prevailing high interest rates leading to increased finance costs and unrealized fair value losses on our portfolio of government securities.”
Simba said the profit warning was “only based on the Management Accounts of the Company and a preliminary assessment” using current figures. He advised shareholders and the public “to exercise caution when dealing with the shares of the Company.”
The company said the Capital Markets Authority approved the profit warning announcement under regulations requiring listed firms to disclose projected earnings drops over 25%.
Despite the challenges, Simba said Sanlam Kenya’s board “continues to focus on innovation, improving capital efficiency and digitalisation of key business processes to improve the company’s operational efficiencies, customer offering and sustainable shareholder returns.”
Sanlam Kenya provides insurance, investment and mortgage services in Kenya and Uganda. The company, founded in 1958, trades on the Nairobi Securities Exchange under the symbol PAFR.
