NAIROBI, Kenya, April 6 – Listed non-banking financial services company Sanlam Kenya Plc has announced that its Rights Issue, aiming to raise up to Sh2.5 billion, will open in two weeks following regulatory approvals.
The company has secured all necessary regulatory approvals from the Capital Markets Authority of Kenya (CMA), the Nairobi Securities Exchange (NSE), the Insurance Regulatory Authority (IRA), and the South African Reserve Bank (SARB). The Rights Issue is scheduled to open on Friday, April 25, 2025, and close on Monday, May 12, 2025.
This move follows shareholder approval late last year during an Extraordinary General Meeting (EGM), where the company sought authorization to recapitalize its balance sheet in order to boost profitability.
In a statement regarding the Rights Issue timetable, Sanlam Kenya Chairman Dr. John Simba highlighted that the KSh 2.5 billion will help recapitalize the company’s balance sheet by settling a loan facility with Stanbic Bank Kenya Plc. He confirmed that all existing Sanlam Kenya shareholders holding issued ordinary shares will be eligible to participate in the Rights Issue.
The transaction will be led by Absa Bank Kenya (Lead Transaction Advisor), Absa Securities Limited (Lead Sponsoring Broker), and Anjarwalla & Khanna LLP (Legal Advisor), among others.
“The purpose of the Rights Issue is to reduce the Group’s indebtedness to a more sustainable level, specifically by lowering long-term debt, which will help reduce financing costs,” Dr. Simba explained.
He also noted that while part of the funds will be used to retire the Stanbic debt, some proceeds will be allocated to providing the company with the operational and financial flexibility to fuel growth and sustain profitability.
Sanlam Kenya Plc CEO Dr. Nyamemba Patrick Tumbo added that the Rights Issue is fully underwritten by Sanlam Kenya’s parent company, Sanlam Allianz Africa Proprietary Limited, which has committed to purchasing any untaken rights after allocation to eligible shareholders.
Dr. Tumbo emphasized that early repayment of the Stanbic Bank facility would significantly reduce the group’s long-term debt levels, thereby saving on financing costs from its lenders.
He further noted that with a strengthened balance sheet and capital reserves, the company is focused on promoting inclusive financial confidence by investing in diversified non-bank financial services.
“In recent years, we have strategically enhanced our capital and investment management by retiring and restructuring our debt portfolio, divesting from real estate, and winding down dormant subsidiaries,” Dr. Tumbo said. “These initiatives have allowed us to sharpen our focus on our core insurance businesses, ultimately delivering better returns to shareholders.”
Looking ahead, the company aims for sustainable growth in market share, driven by innovation in pricing, effective partnerships with bancassurance and technology partners, and capital optimization.
