Sanlam Kenya’s H1 balance sheet steady on successful rights issue

Listed non-bank financial services provider, Sanlam Kenya, has completed a major recapitalisation and debt repayment drive that has reshaped its balance sheet.

The insurer raised Sh2.5 billion through a rights issue in May 2025 to clear the Sh2.4 billion outstanding balances on its Sh4 billion loan with Stanbic Bank Kenya.

The funds raised from shareholders allowed the company to reduce its overall debt by 72 per cent and strengthen its capital base, though the capital raise resulted in significant dilution for existing shareholders. 

The firm’s half-year financial results released Monday show that total assets grew by six per cent despite net earnings shrinking to Sh30.9 million during the review period compared to Sh282.2 million similar period last year.

The firm’s revenue rose 6.1 per cent to Sh3.7 billion, with the investment return climbing 34 per cent to Sh3.08 billion. Even so, these gains were insufficient to offset higher expenses.

According to Sanlam Kenya Group CEO, Patrick Tumbo, the half-year results demonstrate a customer-centric business that is both resilient and well-positioned for sustained growth. While commenting on the divisional business fundamentals, Sanlam Life Insurance reported a 220 per cent solvency rate at the end of the half-year period, while Sanlam General Insurance's solvency rate stood at 194 per cent, indicating sound business operations.

“Our financial strength is underscored by a robust balance sheet, with total assets rising to Sh41.3 billion from Sh39.2 billion at December 31, 2024, driven by strategic growth in financial assets and continued prudent management of capital,” he said.

 “The recent successful rights issue—raising issued share capital to Sh2.7 billion—has significantly strengthened our capital base, enhanced solvency and enabled us to pursue growth opportunities with confidence.”

At the operations level, Sanlam Kenya has continued to maintain strong insurance revenue growth, supported by disciplined underwriting and enhanced customer engagement.

“Our investment portfolio continues to deliver solid returns, with other investment revenue increasing by over 34 per cent year-on-year to Sh3.07billion, demonstrating the effectiveness of our diversified asset allocation strategy in delivering shareholder value,” Tumbo said.

With a reinforced capital structure, a high-quality investment book, and a commitment to operational excellence, Sanlam Kenya, he said, is well placed to navigate the evolving economic environment. Our focus remains on sustainable profitability, deepening customer relationships, and leveraging innovation to unlock value for all stakeholders.

“We move into the second half of 2025 with optimism, anchored by strong fundamentals, an experienced leadership team, and a clear growth strategy that prioritises market leadership, customer trust, and long-term value creation,” he assured.

He added that the firm’s cost and liability management remains a key strength, with borrowings reducing sharply from Sh4.2 billion to Sh1.19 billion, further improving leverage position and creating headroom for future strategic investments.