An insurance company linked to Deputy President William Ruto has been handed a lifeline after it sealed a Ksh190 million deal with the Nairobi County.
A report by Business Daily on Tuesday, November 30, indicated that the company, Africa Merchant Assurance Co. Ltd (Amaco), was awarded the tender to provide insurance cover for the county's motor-vehicles and motorcycles.
The company was awarded the tender following a court ruling in which two other companies had challenged the decision by Nairobi County to give the tender to AMACO.
In her ruling, Justice Pauline Nyamweya approved the tender which had been cancelled by the county's procurement office. The judge argued that the office had no powers to quash the tender.
“The ex parte Applicant (AMACO) is therefore entitled to the orders sought of certiorari to quash the said decision, in light of the applicable principles as regards the grant of this remedy,” ruled the judge.
The tender, which had been awarded in early 2020, was cancelled after the two insurance firms argued that they had not received notices on the cancellation of their bids.
AMACO, however, moved to court challenging the cancellation of the tender.
This tender offers a lifeline to the insurance company which is on the verge of bankruptcy following a Ksh10 million debt owed to six individuals.
In November 2020, the court had sanctioned the process of shutting down the firm after a protracted battle over the payments.
The six who included Elizabeth Karithi, Anisia Muthoni, Faith Muthoni and Silas Kinoti among others claimed that the firm had not paid their dues and in some cases issued bouncing cheques.
The closure order was, however, suspended days later after settling a debt of Ksh4.3 million.
“Whereas the company has outstanding liabilities, we remain committed to settle all of the genuine ones as per our contractual obligation. From 2017 to date, AMACO has paid out a total of Ksh 4 billion in claims and legal liabilities despite the prevailing economic conditions,” the firm explained at the time.
