Business & Money
Sanlam Kenya Winds Up Non-Core Subsidiaries for Profit
Sanlam Kenya Plc, a subsidiary of South Africa’s Sanlam Ltd, is taking decisive steps to stabilize its finances amid ongoing earnings challenges and shareholder concerns. The insurer plans to close its property, bottled water, and asset management businesses due to years of inactivity and sustained financial losses.
:Sanlam Kenya Plc Takes Strategic Steps Amid Financial Challenges: A Deep Dive into Recent Developments
: Sanlam Kenya’s Strategic Moves: Winding Up Non-Core Subsidiaries to Enhance Profitability and Ensure Long-term Shareholder Value
By Charles Wachira
Sanlam Kenya Plc, a prominent subsidiary of South Africa’s financial giant Sanlam Ltd, is undertaking significant measures to stabilise its financial standing amidst prolonged earnings difficulties and shareholder concerns. The insurer has announced plans to wind up its property, bottled mineral water, and asset management businesses, citing years of operational inactivity and persistent financial losses.
According to its latest annual report (2023), Sanlam Kenya identifies three dormant subsidiaries undergoing dissolution: Sanlam Investments Limited, ChemiCemi Mineral Water Company, and Mae Properties. This strategic move aims to streamline operations and refocus resources in response to ongoing financial pressures.
Financial Struggles and Performance Metrics
Sanlam Kenya Plc has faced substantial challenges in recent years, reflected in its financial performance metrics:
- Net Losses: The insurer reported a widened net loss of Ksh127 million ($992,187) in 2023, marking a 53% increase from Ksh83 million ($648,437) in 2022.
- Dividend Drought: Shareholders have experienced consecutive years without dividends, highlighting prolonged financial strain.
- Operational Inactivity: The identified subsidiaries, deemed inactive, have contributed to operational inefficiencies and financial burdens.
Strategic Initiatives and Impact
The decision to wind up inactive subsidiaries aligns with Sanlam Kenya’s strategy to enhance operational efficiency and mitigate financial losses. Key initiatives include:
- Cost Management: Streamlining operations and reducing overhead costs associated with dormant subsidiaries.
- Focus on Core Business: Concentrating resources on core insurance services to strengthen market position and profitability.
- Investor Confidence: Addressing shareholder concerns through strategic restructuring aimed at sustainable financial recovery.
Future Outlook
As Sanlam Kenya progresses with its restructuring efforts, the company aims to achieve financial stability and regain investor confidence. The focus on core insurance operations is expected to bolster resilience and pave the way for sustainable growth in the competitive Kenyan market.
In conclusion, Sanlam Kenya’s proactive measures underscore its commitment to navigating financial challenges effectively while aligning with broader strategic objectives. By winding up non-core subsidiaries and prioritising core operations, the company aims to chart a path towards profitability and sustained shareholder value creation in the years ahead.
Keywords:Sanlam Kenya Plc:Financial Restructuring:Subsidiary Dissolution:Operational Efficiency:Investor Confidence
: KCB Group reports Sh44.5B ( US$ 342.31) nine-month profit, outpacing
Equity Bank. Learn about its 49% growth, challenges, and stock performance this
year.
KCB Group Plc has outperformed Equity Bank to cement its position as Kenya’s leading
lender, posting a net profit of Sh44.5 billion for the nine months ending September
This represents a 49% year-on-year growth, surpassing Equity Bank’s Sh37.5
billion profit during the same period.
Profit Growth Driven by Core Business Performance
The remarkable profit growth was fueled by higher earnings from both interest and non-
interest income streams. KCB’s diverse revenue base has been pivotal in maintaining
its dominance in the competitive banking sector.
Non-Performing Loans a Key Concern
Despite the impressive profit growth, KCB’s non-performing loan (NPL) ratio rose to
18.5%, compared to 16.5% last year. This increase highlights persistent challenges in
managing credit risk, with Chief Financial Officer Lawrence Kimathi acknowledging it as
a “pain point” for the bank.
KCB Stock Outshines Peers on NSE
KCB’s strong financial performance has translated into exceptional stock market results.
The bank’s stock has risen 78.8% year-to-date, making it the best-performing banking
stock on the Nairobi Securities Exchange (NSE).
Plans to Sell National Bank of Kenya
Earlier this year, KCB announced plans to sell its struggling subsidiary, National Bank of
Kenya (NBK), to Nigeria’s Access Bank. While Nigerian regulators have approved the
deal, it is still awaiting clearance from Kenya’s Central Bank. The sale aims to
streamline KCB’s operations and address losses at NBK.
CEO Paul Russo Optimistic About Year-End Performance
“The journey has not been without its hurdles, but our ability to walk alongside our
customers has driven our success,” said KCB CEO Paul Russo. He expressed
confidence in closing the year on a high note, leveraging improving economic conditions
across the region.
Key Figures at a Glance
● Net Profit: Sh44.5 billion (+49%)
● Non-Performing Loan Ratio: 18.5% (up from 16.5%)
● Stock Performance: +78.8% year-to-date
KCB’s strong performance underscores its resilience in navigating challenges and its
commitment to sustaining growth in Kenya’s banking sector.
Business & Money
Top 10 Kenyan banks by total assets as of 2023, based on data from the Central Bank of Kenya:
KCB Bank Kenya Limited
Total Assets: KSh 1.425 trillion
Market Share: 17.4%
Equity Bank Kenya Limited
Total Assets: KSh 1.004 trillion
Market Share: 12.2%
NCBA Bank Kenya PLC
Total Assets: KSh 661.7 billion
Market Share: 9.2%
Co-operative Bank of Kenya
Total Assets: KSh 624.3 billion
Market Share: 8.8%
Absa Bank Kenya PLC
Total Assets: KSh 520.3 billion
Market Share: 6.6%
Standard Chartered Bank Kenya
Total Assets: KSh 429.3 billion
Market Share: 5.9%
Stanbic Bank Kenya
Total Assets: KSh 449.6 billion
Market Share: 5.8%
I&M Bank Limited
Total Assets: KSh 405.6 billion
Market Share: 5.4%
Diamond Trust Bank Kenya
Total Assets: KSh 399.6 billion
Market Share: 5.3%
Bank of Baroda (Kenya) Limited
Total Assets: KSh 201.9 billion
Market Share: 2.8%
These rankings illustrate the dominance of large Tier 1 banks, which collectively control over
76% of the market share. Strategic expansions, increased deposit mobilisation, and robust
lending practices underpin the sector’s strong performance
: Vasundhara Oswal, daughter of industrialist Pankaj Oswal, faces serious
charges in Uganda. The Oswals call for UN intervention amid claims of corporate
jealousy.
Vasundhara Oswal, the 26-year-old daughter of prominent Swiss-Indian industrialist
Pankaj Oswal, has found herself at the centre of a legal storm in Uganda.
Her father, a well-established business figure, is known for his diverse investments,
most notably a $150 million ethanol plant in Uganda.
This plant, the largest of its kind in East Africa, is a key part of Oswal’s broader strategy
to invest in industrial and eco-friendly solutions in the region. The facility produces extra-neutral alcohol (ENA), which is used in the beverage, cosmetics, and pharmaceutical industries.
It is recognised for its modern technology and sustainable practices, such as zero liquid
discharge, emphasising the Oswal family’s commitment to both industrial growth and
environmental responsibility.
In addition to the ethanol plant, Pankaj Oswal has made strategic investments across
various industries, including petrochemicals, agriculture, and real estate.
His ventures reflect a global reach, extending to Australia and India, where he has
been involved in industries ranging from agriculture to renewable energy.
His diversified business approach and commitment to sustainability have made him a prominent figure in international business. However, in October 2024, the family’s legacy was overshadowed by the legal troubles surrounding Vasundhara Oswal.
She was detained on October 1, 2024, after being accused of involvement in the
alleged murder of Mukesh Menaria, a former employee who had worked with the
Oswals since 2017.
Menaria had accused the family of harassment but later testified under oath that they
had not harmed him Despite this, charges of kidnapping and murder were brought against Vasundhara.
Her family has strongly denied these allegations, claiming that the charges are
politically motivated and part of a larger conspiracy orchestrated by their business rivals
in collaboration with corrupt officials in Uganda.
The Oswals have appealed to the United Nations, seeking intervention and asserting
that the legal proceedings against Vasundhara are unlawful. Vasundhara has actively managed the family business throughout her career, especially the ethanol plant, and led the company’s sustainable initiatives.
Beyond her business involvement, she has also been an advocate for community
welfare and mental health, further cementing the Oswal family’s reputation for corporate
social responsibility.
The unfolding legal drama has raised important questions about the intersection of
business, politics, and the legal systems in Uganda.
While the Oswal family’s ventures reflect a blend of industrial innovation and social
responsibility, the legal challenges Vasundhara faces have cast a shadow over their
business empire, highlighting the complex dynamics at play in East Africa.
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