Sanlam General Insurance has pledged its shares to secure a Sh1 billion loan it took from a subsidiary of Sanlam Limited in an agreement that could see the South African multinational take a major stake in the Kenyan insurer if it defaults.
The loan was disbursed in May last year to boost the insurer’s capital adequacy ratios, bringing it to compliance at 100 percent compared to the previous negative 81 percent.
