Sanlam Kenya Plc has wrapped up its KSh 2.5 billion rights issue with an 82% uptake from shareholders, increasing its market float and opening a new chapter in its recapitalisation strategy.
- •Sanlam Allianz Africa, the underwriter, covered the remaining 18%, ensuring the offer raised the full amount.
- •The company had priced the new shares at KSh 5.00 each to attract participation and ease investor entry.
- •CDS accounts will reflect new shares by 3 June 2025, and the 500 million new shares will begin trading at The Nairobi Securities Exchange (NSE) on 4 June 2025.
In April 2025, Sanlam Kenya launched the rights issue to strengthen its balance sheet. This move followed a strong recovery in FY2024, where the company posted a 922% rise in profit after tax to KSh 1.05 billion, reversing a KSh 125.9 million loss the year before.
Three key drivers powered this turnaround:
- •Investment income rose by 397% to KSh 5.27 billion
- •Insurance revenue increased by 5.4% to KSh 7.36 billion
- •Total assets climbed to KSh 39.2 billion, while equity more than doubled to KSh 1.9 billion
Additionally, the firm retired high-cost debt, exited real estate holdings, and wound up non-core subsidiaries. These steps helped sharpen its focus on core insurance operations and improve financial efficiency.
Final Results at a Glance
| Item | Details |
|---|---|
| Shares Offered | 500,000,000 |
| Offer Price | KSh 5.00 (41.9% discount) |
| Total Capital Target | KSh 2.5 billion |
| Shareholder Subscription Rate | 82% (407.7M shares) |
| Additional Shares Requested | 5.06 million |
| Shares Taken by Sanlam Allianz | 92.3 million |
| Total Subscription (Final) | 100% |
| NSE Listing Date | 4 June 2025 |
This capital raise allows Sanlam Kenya to lower its debt burden and cut interest costs. By improving liquidity, the company expects to support future profitability and maintain growth momentum.
The full underwriting by Sanlam Allianz Africa confirmed strong institutional confidence in the Kenyan subsidiary. This backing provides assurance to the market, especially during periods of limited investor appetite.
“The rights issue supports our mission to optimize capital and unlock shareholder value. With our debt load set to reduce, we can now focus on core insurance business and drive sustainable profitability.”
Dr. Nyamemba Patrick Tumbo, CEO
“This capital raise enables us to realign our growth trajectory without the overhang of high interest obligations.”
Dr. John Simba, Chairman
