Sanlam Kenya Set To Offer Annuity Loans

Sanlam pension annuity holders are set to enjoy access to personal loans against their monthly life cover pay-outs.

Sanlam Kenya, the listed non-bank financial services provider has through its Sanlam Life subsidiary partnered with Stanbic Bank Kenya and Ecobank Kenya to provide policyholders with annuity covers access to tailor-made credit.

Policyholders with annuity covers will also access medical insurance through GA Insurance, under its Hadhi Health Plan that is tailored for senior citizens.

The move is informed by Sanlam’s commitment to its customers, in addressing their needs. The credit and medical solution were informed by its wide base of annuity policyholders, with a monthly annuity payroll of over Kshs 80 million to over 4,000 retirees.

The inclusive facility will be extended as both a loan and Insurance Premium Finance (IPF) to annuitants of a maximum age of 75 years, offering competitive interest rates due to the guaranteed nature of the payments, and a tenure not exceeding 12 months subject to an annual review.

Speaking on the partnership, Sanlam Kenya Group CEO Dr. Nyamemba Tumbo noted that the facility introduction was informed by an existing need in the market, from the retirees’ population.

“We received requests from clients for a facility backed by their monthly annuity pay-out as it is a guaranteed payment due to the retiree for the rest of their lifetime. At Sanlam, we’re a listening partner committed to financially enriching the lives of our customers,” he said.

“This partnership is in line with our continued customer focus, identifying needs and strategic partnerships to achieve results. We will be able to offer this facility through operational agility, synergy with our partners, and a customer-first mentality” he added.

Speaking on the partnership, Ecobank Kenya Managing Director & Regional Executive Central, Eastern & Southern Africa (CESA) Cheikh Travaly said: “We’re keen on promoting financial inclusion by offering workable financial solutions to individuals and businesses. The elderly and retired people have limited access to credit due to discriminative market practices. However, based on their monthly life cover payouts, we will now be able to offer them personal loans at affordable rates hence unlocking credit, promoting financial inclusion, and ensuring they lead meaningful and productive lives.”

Stanbic Bank Kenya, Head of Consumer and High Net-worth Clients, Lilian Onyach added that the partnership with Sanlam was informed by its track record as a long-serving insurer in the market.

“We are glad to partner with Sanlam, to provide convenient means for retirees to access funds. This facility will ensure that retirees have access to the much-needed medical covers or are able to meet their short-term financial needs conveniently, thus reducing any hurdles they would normally encounter in search of credit and medical covers” she added.

The facility is limited to Sanlam Kenya’s annuitants and will be issued against their monthly payout. It can be accessed in case of emergencies as well, following due procedures.