Sanlam Kenya Raises Ksh 2.5 Billion in Fully Subscribed Rights Issue
Sanlam Kenya Raises Ksh 2.5 Billion in Fully Subscribed Rights Issue
Proceeds to repay debt and power future growth
Sanlam Kenya Plc (NSE: SLAM) has raised Ksh 2.5 billion following the successful completion of its Rights Issue, which recorded a 100% subscription. The offer opened on April 25 and closed on May 12, 2025, attracting strong shareholder interest. Investors took up 82% of the rights, while underwriters filled the remaining gap, ensuring full subscription.
Funds to Strengthen Balance Sheet and Boost Growth
During the announcement, Group CEO Dr. Patrick Tumbo emphasized the capital raise’s strategic importance. “This funding enables us to repay our outstanding bank facility, significantly lowering our interest expenses and enhancing our operational agility,” he stated. He added that the move aligns with Sanlam’s broader transformation strategy.
The Rights Issue was priced at Ksh 5 per share, allowing shareholders to purchase 125 new shares for every 36 held. A total of 500 million new shares were offered.
Sanlam Kenya Raises Ksh 2.5 Billion in Fully Subscribed Rights Issue
Chairman Dr. John Simba expressed appreciation to investors for their trust and acknowledged the strong backing from Sanlam Allianz Africa. “With improved capital reserves and a healthier balance sheet, we will now accelerate our expansion into non-bank financial services. Our goal is to build financial confidence across all customer segments,” he explained.
Strategic Focus on Expansion and Financial Inclusion
In addition to repaying debt, the capital injection allows Sanlam Kenya to grow its footprint in insurance, asset management, and other financial services. The firm plans to invest in innovation, digital platforms, and financial literacy to enhance customer value.
Shareholders will receive their allocation statements and any refunds on May 30, 2025. CDS accounts will reflect the new shares by June 3, and trading on the Nairobi Securities Exchange will begin on June 4.
This milestone marks a renewed phase in Sanlam Kenya’s growth and affirms investor confidence in its strategic direction.
