Sanlam Kenya records KSh 1.9 billion loss
Insurance and investments company, Sanlam Kenya has registered Ksh1.98 billion loss for the financial year 2018, compared to the previous year’s KSh 53 million profit.
The huge loss is largely attributed to the impairment of bad debts amounting to KSh1.14 billion issued to Kaluworks, Real People and Athi River Mining Cement. Additionally, a new regulatory requirement saw Sanlam set aside KSh0.65 billion in the statutory reserve fund thus reducing its recorded earnings.
In 2018, while issuing a profit warning for the year end results, the company’s CEO called for tougher regulations on issuance of corporate bonds. It followed Sanlam’s loss of funds to struggling corporate bond issuers.
Sanlam’s revenue from its life and general insurance businesses dropped by KSh24 million. The firm blamed operating environment for the decline. The firm’s borrowings more than doubled to KSh3.5 billion compared to KSh1.03 billion recorded in 2017.
The company’s board members failed to recommend a dividend for the financial year 2018.