Sanlam Kenya Plc, a non-bank finance solutions provider, has projected a drop in its earnings after tax for the year ending December 31, 2023, due to high costs of doing business and a sluggish economy.
The company expects its earnings to be at least 25 per cent lower than the previous year, the board of directors announced.
The decline in earnings has been attributed to high-interest rates that have increased finance costs for the company and unrealised losses on its government securities portfolio, which have reduced its fair value.
For the financial year ended December 31, 2022, the company reported a revenue of Ksh 11,004.39 million, a decrease of 11.4 per cent from Ksh 12,418.86 million in 2021.
Sanlam Kenya also reported a net loss of Ksh 11.36 million, an improvement of 97.2 per cent from Ksh 401.29 million in 2021.
Its basic and diluted loss per share from continuing operations was Ksh 0.08, a reduction of 97.1 per cent from Ksh 2.79 in 2021.
“Shareholders of Sanlam Kenya plc and the public are therefore advised to exercise caution when dealing with the shares of the company,” the board said in a statement.
Sanlam Kenya Plc is listed on the Nairobi Securities Exchange under the insurance sector.
Some of the other firms that have issued warnings include Express Kenya, Crown Paints Kenya PLC, WPP Scangroup, Kenya Airways, Everready, Nation Media Group, Sasini, KPLC, Centum, Unga Group, Longhorn Publisher, and Car & General.