Companies

Court sets stage for winding up of Ruto-linked Amaco over Sh10m debt

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Milimani Law Courts. FILE PHOTO | NMG

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Summary

  • Justice Margaret Muigai ordered the liquidation of the company after it failed to pay a debt of Sh10.2 million demanded by six people.
  • In the petition before Justice Muigai, the six said the company had refused to pay and in some instances, issued bouncing cheques.
  • Last year, Amaco recorded a Sh75 million after-tax profit mainly boosted by lower operating costs.

The High Court has sanctioned the winding up of 22-year-old Africa Merchant Assurance Company (Amaco) associated with Deputy President William Ruto.

Justice Margaret Muigai ordered the liquidation of the company after it failed to pay a debt of Sh10.2 million demanded by six people.

The judge ordered the official receiver to oversee the process and eventually dissolve the insurance company.

The six including Elizabeth Karithi, Anisia Muthoni, Faith Muthoni and Silas Kinoti, filed cases against the company before courts in Embu, Runyenjes and Ngong’ seeking various amounts following accidents.

In the petition before Justice Muigai, the six said the company had refused to pay and in some instances, issued bouncing cheques.

“That Africa Merchant Insurance Company Limited is hereby liquidated under supervision of the official receiver and liquidator,” the judge directed.

The court also heard that the judgements and decrees obtained by the six have been served on the company and have never been set aside nor appealed.

They also revealed that plans to attach the company’s properties have been unsuccessful, leaving them with no other option but to wind up the firm.

“It is clear that the company is unable to pay its debts and it is just and equitable that company should be wound up in the interest of justice,” the petitioner’s said.

According to the Insurance Regulatory Authority’s (IRA) 2019 report, Amaco — alongside Invesco Assurance — closed the year with the highest cases of customer complaints due to delayed settlement.

According to the IRA, Amaco reported 1,649 cases of unsettled liability claims with none settled compared to its second quarter’s 1,705 cases during which 169 were settled.

Outstanding non-liability claims stood at 2,005 cases up from 1,907 reported in the quarter during which 444 fresh claims were made and 346 claims paid.

Last year, Amaco recorded a Sh75 million after-tax profit mainly boosted by lower operating costs.