Sanlam set to pursue bond default directors

Sanlam Kenya CEO Patrick Tumbo. SALATON NJAU PHOTO | NMG

What you need to know:

  • Sanlam Kenya will take legal action against firms such as Kaluworks, a manufacturer of aluminum utensils and roofing sheets associated with industrialist Manu Chandaria’s family.
  • The company says it will now move away from such “high toxic” investments and focus on areas such as government infrastructure bonds until the law governing the corporate bond market is strengthened.
  • The firm had lent Sh169 million to Kaluworks, Sh574 million to ARM Cement, and Sh398 million to struggling Real People Kenya

Sanlam Kenya now wants directors of companies that defaulted on Sh1.15 billion through corporate bond issues held personally liable for “misleading” the investment firm.

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