Companies

Xplico Insurance faces wind-up suit

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Summary

  • Dorice Mwaka Mwakwekwe filed a liquidation petition on March 17, which was gazetted on Friday without giving details of her claim.
  • Xplico Insurance has been facing a tough operating environment and ran afoul of the regulator after the company failed to disclose its entire financials for the fourth quarter ended December 2021.
  • The firm has also seen a decline in business over the last year besides boardroom wrangles over ownership.

A creditor has moved to court seeking to wind up Xplico Insurance over an undisclosed outstanding debt, adding to the woes of the company.

Dorice Mwaka Mwakwekwe filed a liquidation petition on March 17, which was gazetted on Friday without giving details of her claim.

Xplico Insurance has been facing a tough operating environment and ran afoul of the regulator after the company failed to disclose its entire financials for the fourth quarter ended December 2021.

The firm has also seen a decline in business over the last year besides boardroom wrangles over ownership.

“Notice is given that a petition for the liquidation of the above-mentioned company by the High Court was on 17th March 2022, presented to the said court by Dorice Mwaka Mwakwekwe and the said petition is directed to be heard before the High Court sitting at Malindi on the 9th June 2022,” the notice on Kenya Gazette reads.

“Any creditor or contributory of the said company desirous to support or oppose the making of an order on the said petition may appear at the time of hearing in person or by his advocate for that purpose and a copy of the petition will be furnished by the undersigned to any creditor or contributory of the said company.”

Xplico Insurance has seen a decline in business over the last year besides boardroom wrangles over ownership lasting nearly a decade.

In the third quarter, public service vehicle owners ditched the company, shrinking its market share in the category by almost two-thirds from 21.9 percent to 7.5 percent.

Biggest gainer

The biggest gainer of the slump at Xplico was Directline Insurance, which rose to control 69.6 percent of the market by September.

By the fourth quarter, Xplico had the most customer complaints at 26, indicating the firm's failure to settle customer claims on time.

The company now faces a liquidation suit from creditors at a time when the insurance market has been rocked by the collapse of Resolution Insurance that was put under statutory management after shareholders failed to re-capitalise the business.

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