Sanlam Kenya Plc will open its long-awaited Sh2.5 billion Rights Issue on April 25, 2025, following final clearance from the relevant regulatory bodies.

The listed non-banking financial services firm confirmed that approvals from the Capital Markets Authority (CMA), Nairobi Securities Exchange (NSE), Insurance Regulatory Authority (IRA), and South African Reserve Bank (SARB) have all been secured, paving the way for the cash call to proceed until May 12, 2025.

The initiative, first approved by shareholders at an Extraordinary General Meeting held late last year, seeks to recapitalise the Company’s balance sheet, allowing it to settle an existing loan from Stanbic Bank Kenya Plc.

Only shareholders on the register of the issued ordinary shares will be eligible to participate in the offer.

Sanlam Kenya Chairman John Simba explained that the Rights Issue is an important milestone in the Company’s ongoing efforts to stabilise and strengthen its capital structure.

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“The purpose of the Rights Issue is to bring the Group’s indebtedness to a more sustainable level and will specifically enable the Company to reduce its long-term debt levels, which will save on financing costs currently being charged by the Company’s lenders,” he said.

He added, “While part of the funds will be used to retire the Stanbic debt, a part of the proceeds will also be used to provide management with the operational and financial flexibility to drive the Group’s growth ambitions and sustain its profitability.”

The transaction is being managed by a consortium of experienced advisors, including Absa Bank (Kenya) Plc as Lead Transaction Advisor, Absa Securities Limited as Lead Sponsoring Broker, Anjarwalla & Khanna LLP (ALN Kenya) as Legal Advisor, KPMG Kenya as Reporting Accountant, Stanbic Bank Kenya Plc as Receiving Bank, Image Registrars Limited as Share Registrar, and Oxygène MCL as Marketing Consultants.

Sanlam CEO Nyamemba Patrick Tumbo assured stakeholders that the entire issue has been underwritten by Sanlam Kenya’s parent company, Sanlam Allianz Africa Proprietary Limited.

“In recent years, we have strategically worked to tighten and enhance our capital and investments management by retiring and restructuring our debt portfolio, divesting from real estate and winding up dormant subsidiaries,” Tumbo said.

According to Tumbo, These efforts have enabled the Group to maintain a razor-sharp focus on its core insurance businesses, guaranteeing better returns to shareholders

He further stated that the parent firm would pick up any rights not taken up by shareholders, ensuring the target capital is fully raised.

Tumbo noted that early repayment of the Stanbic facility would significantly ease pressure on the firm’s financing costs.

With a reinforced capital base, Sanlam Kenya intends to channel efforts toward inclusive financial solutions across non-bank segments.

The Company’s medium-term growth outlook, he said, rests on disciplined capital deployment, partnerships in bancassurance and technology, and agility in product innovation.