Sanlam Kenya Plc has secured shareholder backing for a KES 3.25 billion rights issue aimed at bolstering its capital reserves and financial health, paving the way for the firm to enhance profitability and pursue its growth ambitions.
At an Extraordinary General Meeting (EGM), Sanlam Kenya Chairman Dr. John Simba emphasized the significance of the move, stating, “The rights issue proceeds will also be used as working capital, providing the firm with operational flexibility and resources to drive the Group’s growth and profitability.”
The capital will be raised by increasing the company’s share capital from KES 2 billion to KES 3.72 billion, issuing up to 1 billion ordinary shares at a nominal value of KES 5 per share. Sanlam Kenya plans to utilize the funds for early repayment of an existing facility from Stanbic Bank Kenya, a move expected to reduce long-term debt and ease interest costs.
Dr. Simba highlighted the board’s commitment to enhancing shareholder value through strategic financial initiatives. He remarked, “The EGM has also authorized the Board of Directors to carry out necessary measures to allocate the rights issue to eligible shareholders.”
Dr. Nyamemba Tumbo, CEO of Sanlam Kenya, noted that the rights issue would be fully underwritten by Sanlam Kenya’s parent company, Sanlam Allianz Africa Proprietary. He added, “In recent years, we have worked to tighten and enhance our capital and investments management by retiring and restructuring our debt portfolio, divesting from non-core operations, and maintaining a razor-sharp focus on core insurance businesses.”
Sanlam Kenya’s medium-term strategy includes diversifying its non-banking financial services portfolio, leveraging partnerships in bancassurance, technology, and sustainable market practices. “Guided by professional management and operational efficiency, this initiative positions us for sustainable market share growth,” Dr. Tumbo concluded.
