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Key Points
- Sanlam Kenya repaid a $23.5 million Stanbic loan using proceeds from a $19.3 million rights issue, signaling renewed financial stability after multiple loan restructurings.
- The firm posted $8.17 million net profit in 2024, reversing a loss in 2023, driven by higher insurance revenue and a fivefold jump in investment income.
- Total equity more than doubled to $14.87 million while assets rose 10.22%, reflecting broad recovery in core operations and improved financial stability.
Sanlam Kenya Plc, a non-bank financial services provider backed by Kenyan investor Baloobhai Patel, has fully repaid a Ksh4 billion ($23.5 million) loan owed to Stanbic Bank Kenya, marking a major milestone in its turnaround efforts after years of restructuring and financial pressure.
The loan—initially restructured three times—was retired using proceeds from a recent Ksh2.5 billion ($19.3 million) rights issue. The company had already repaid Ksh800 million ($6.18 million) before the capital raise and settled the remaining balance on May 23.
The move frees the non-bank financial services firm from a lingering debt burden that had weighed heavily on its performance and signals a reset for the company’s capital structure.
Return to profit driven by investment surge and stronger revenue
Sanlam Kenya swung back to profitability in 2024 with a net profit of Ksh1.06 billion ($8.17 million), reversing a loss of Ksh161.1 million ($1.25 million) recorded in the previous year. The rebound was driven by stronger insurance revenue, tighter cost controls, and a fivefold increase in investment income to Ksh5.27 billion ($40.79 million).
Insurance revenue grew 6.09 percent to Ksh7.36 billion ($56.97 million), helping offset a slight dip in insurance service results. Meanwhile, a turnaround in other investment income—from a Ksh1.94 billion ($15.02 million) loss in 2023 to a Ksh2.31 billion ($17.88 million) gain—provided a major earnings uplift.
On the balance sheet, total assets grew by 10.22 percent to Ksh39.17 billion ($303.13 million), up from Ksh35.54 billion ($275.04 million) in 2023. Total equity more than doubled, rising by 121.82 percent to Ksh1.92 billion ($14.87 million), compared to Ksh866 million ($6.7 million) previously.
The results reflect a broad recovery in Sanlam Kenya’s core business operations, with strengthening investment income and steady premium growth positioning the insurer for more sustainable profitability going forward.
Patel doubles down on insurer turnaround
Baloobhai Patel, who holds a 21-percent stake in Sanlam Kenya through Aksaya Investments, has remained committed to the company despite past setbacks. The billionaire’s continued support signals his long-term confidence in the insurer’s restructuring drive and its growth potential in Kenya’s insurance and investment landscape.
Patel’s portfolio spans key Nairobi Stock Exchange-listed companies, including Safaricom, Absa Kenya, Bamburi Cement, and Diamond Trust Bank. His stake in Sanlam Kenya reinforces his influence in the country’s financial services ecosystem, as the firm pivots toward more sustainable profitability.
