(L-R) Sanlam East Africa Head Julius Magabe, Sanlam Group CEO Ian Kirk & Sanlam Kenya Group CEO Mr Mugo Kibati
Sanlam Kenya has announced a massive Ksh. 1.5 billion loss for the half year ended 30th June 2018. The company posted a net profit of Ksh. 90 million in a similar period last year.
Total income dipped to Ksh. 3.688 billion from Ksh. 4.295 billion in 2017. Expenses jumped to Ksh. 5.459 billion from Ksh. 4.143 billion. The expenses include a 100% write off of corporate bonds of Ksh. 1.152 billion. The corporate bonds were issued to companies such as ARM Cement (currently in administration), Real People and Kaluworks.
Based on the half year loss, the company has issued a profit warning and has projected that the earnings for the year ended 31st December 2018 will be 25% lower than for the same period in 2017. Profit after tax in 2017 was Ksh. 53 million and in 2016 it was Ksh. 70 million. The company has promised to put together a turnaround strategy to change the company’s fortunes.
Sanlam Kenya is an insurance, investment and retirement group. The company offers a wide range of financial products and services in Insurance, Asset management and Real Estate. It does so through its subsidiaries Sanlam Life Insurance Limited, Sanlam Investments Limited, Sanlam General Insurance Limited and Sanlam Securities Limited.