Sanlam Kenya recorded a Sh1.98 billion net loss for the 2018 financial year, a stark contrast to the Sh53 million profit posted in 2017, according to audited financial statements.
The insurer's total income fell to Sh5.1 billion from Sh7.3 billion during the period, with management attributing the decline to financial distress among key corporate partners.
Chief executive Patrick Tumbo highlighted that investments in firms like Athi River Mining, Real People, and Kaluworks contributed to a Sh1.14 billion impairment charge. He also cited a Sh650 million revenue reduction from adopting a more conservative reserving approach mandated by the Insurance Regulatory Authority.
"While these factors are non-recurring, their combined impact resulted in the significant loss," Tumbo stated. The company's chairman, John Simba, confirmed no dividend proposals will be presented at the May 9, 2019, Annual General Meeting due to the financial performance.
