Sanlam Kenya Plc stock has gained by more than 27% over the last one week following the company’s decision to retract a profit warning statement ahead of the release of its full year results in few days time.
In two weeks, share price of the Nairobi Securities exchange listed Insurance firm has skyrocketed by 66% to a 10 week high of Ksh 30 compared to a price of Ksh 18 traded on January 30th.
Last week, the company withdrew a profit warning statement sent o Dec 3oth saying the decision had been necessitated by a reduction in the level of impairment provisions; earlier considered for some of the firm’s investments in banking entities and was not based on the change of its accounting system or method and had been approved by the Capital Markets Authority.
“The withdrawal has been undertaken based on engagements with the relevant regulatory agencies as part of our corporate governance policies,” the company’s CEO Mugo Kibati said, adding that, “a review on our life business liabilities and impairment provisions against some of our banking exposures has necessitated this withdrawal and the earlier profit warning is no longer valid.”
