Sanlam Kenya recorded a KSh1.98 billion loss for the 2018 financial year, a stark contrast to the KSh53 million profit reported in 2017.
The loss stemmed from significant debt impairments totaling KSh1.14 billion linked to Kaluworks, Real People, and Athi River Mining Cement. A separate regulatory requirement also forced the company to allocate KSh650 million to statutory reserves, further eroding profits.
During the same period, Sanlam issued a profit warning citing challenges from corporate bond defaults. The CEO subsequently advocated for stricter regulations on corporate bond issuance, following the company's KSh1.1 billion funding loss tied to struggling issuers.
Revenue from life and general insurance operations declined by KSh24 million, attributed to a challenging market environment. The firm's borrowings more than doubled to KSh3.5 billion in 2018, up from KSh1.03 billion in 2017.
The board opted not to propose a dividend for the 2018 financial year.
