Sanlam Kenya's No-Dividend Streak Continues for The 10th Year

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Sanlam Kenya PLC shareholders will continue to face a decade of disappointment as the company extends its streak of no dividends for another year.

The board of directors failed to recommend paying dividends for the financial year ending December 2023, extending the suspension of payouts that began in 2013. That year, Sanlam Kenya issued its last dividend to shareholders at a rate of KES 4.50 per share.

The company had warned its shareholders and the public to exercise caution when dealing in its shares. However, sanlam kenya management team noted the long period without dividends and said the company is actively reinvesting its surpluses to build capital.

This reinvestment strategy aims to strengthen Sanlam Kenya’s financial base and position it for future growth by creating a buffer against economic headwinds.

This news comes alongside a wider net loss reported by Sanlam Kenya for the year ended December 31, 2023.

While Sanlam Kenya’s core insurance business showed some improvement, generating KES 686 million in net insurance service revenue compared to a net loss in 2022, the company’s overall financial health remains under strain.

Investment returns, a key source of income for Sanlam Kenya, also took a significant hit, plummeting 48.1% to KES 1.1 billion.

This decline heavily impacted profitability, dragging profit before tax down by 15% to KES 242.8 million.

This widened the net loss to KES 126.6 million in 2023, a significant increase from the KES 82.9 million loss reported in 2022. This marks the fourth consecutive year of losses for Sanlam Kenya.

The decline in investment income and rising debt servicing costs are among the primary reasons behind the company’s continued financial struggles and suspension of dividend payouts.

Sanlam Kenya foreshadowed these financial difficulties in December 2023 by issuing a profit warning to investors. The warning cited high-interest rates, leading to increased borrowing expenses, and unrealized losses on government securities as major factors contributing to the anticipated losses.

The prevailing high-interest rate environment squeezed profitability as Sanlam Kenya shouldered a heavier burden for servicing its debts. Additionally, the company faced unrealized losses on its holdings of government securities, further dampening its investment returns.

Despite the current financial challenges, Sanlam Kenya remains a prominent player in Kenya’s insurance sector, offering a diverse range of products and services.

This includes life insurance, financial planning solutions, retirement schemes, wealth management, and investment management services.

They provide corporate life insurance solutions to protect key employees and ensure business continuity. General insurance safeguards company assets, and investment products allow businesses to grow their capital.

For companies operating in the import/export sector, marine insurance is a crucial product offered by Sanlam Kenya.

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Sanlam Kenya additionally provides a variety of options including Flexi Educator Plus, a plan specifically designed for educators, FADHILI Funeral Cover to ease the burden of funeral expenses and home insurance to safeguard properties.

They also have motor comprehensive private insurance for car owners, and personal accident insurance to provide financial support in case of accidents.

For inquiries, you can reach out through the Sanlam kenya contact at +254 (0)722 206 900. The Sanlam kenya customer care number is also +254 (0)20 278100. More information about Sanlam Kenya’s products and services can be found on their website.

For those seeking Sanlam kenya career opportunities, you can explore the company’s careers page now.

Details on the Sanlam kenya money market fund can also be found on the Sanlam Kenya portal. For more information on this or other inquiries, please refer to Sanlam Kenya’s website or contact their customer care department directly.

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