By Gitahi Ngunyi
Listed insurance and investment group, Sanlam Kenya has reported a Sh1.5 billion in net loss for half year 2018.
According to financial results forwarded to Nairobi Securities Exchange (NSE) today, the loss was a result of Sh1.15 billion impairment in the group’s financial assets, finance costs and a 24.2 percent fall in investment income.
Coupled with Sh700 million drop in the group’s cash position, the impairment in the financial also wiped out Sh1.7 billion from the group’s balance sheet.
The firm has blamed the impairment on corporate bonds held in distressed companies.
Some of the corporate bond investees included Athi River Mining (under administration) Sh574 million, Real People Sh398 million and Kaluworks Sh169 million.
“These facilities are at various stages of financial distress and it remains prudent for us to maintain a balance sheet that reflects this status as collection and recovery efforts progress,” Sanlam Kenya Group Chief Executive Patrick Tumbo explained press statement.