Sanlam Kenya, a leading financial services provider, has announced its plan to raise up to KES 3.25 billion through a rights issue, pending shareholder and regulatory approval. This move, announced on November 13, 2024, is designed to strengthen the company’s financial position by significantly reducing long-term debt and providing the operational flexibility needed to achieve its growth ambitions.
The decision was unanimously approved by Sanlam Kenya’s board as part of a broader strategic effort to enhance financial resilience and drive profitability in the long term. The capital raised will be directed toward servicing existing debt, which, according to the company, will reduce its interest burden and thus improve financial stability. Additionally, the infusion of capital will provide Sanlam Kenya with the flexibility needed to fund growth initiatives and navigate a challenging economic landscape.
“The rights issue will enable us to position the company on a more sustainable financial footing, benefiting both our operations and our shareholders,” said Dr. JPN Simba, Chairman of Sanlam Kenya. He emphasized that the move aligns with the company’s commitment to deliver sustainable returns over the long term and reflects a proactive approach to ensuring business continuity and competitive positioning.
In line with regulatory requirements, Sanlam Kenya has pledged to release an information memorandum detailing the terms of the rights issue, which will be subject to approval by the Capital Markets Authority. This documentation will include the specifics of how the funds will be allocated and the expected impacts on the company’s financials.
Sanlam has advised shareholders and the public to exercise caution when dealing in the company’s shares and to verify all official announcements through its authorized channels.
