Amaco Insurance Company associated with Deputy President William Ruto got a reprieve after the court suspended the ordered closure of the firm.
In a notice published on the dailies of December 2, the company announced that it had obtained orders to suspend the closure which had been sanctioned by the courts over a Ksh10 million debt.
“While this was not the expected outcome at the time, we are pleased to let you know that we have received a temporary order of stay which was issued on November 25, 2020.
“This means that the intended process of placing our company under a receiving manager has been halted pending the hearing and determination of our application for review,” the notice read.
The firm explained that it had managed to clear Ksh4.3 million of the claim which was made by six clients who had taken the insurer to court.
In addition, the company has initiated a payment with the petitioner's counsel with a view of reaching an amicable settlement.
“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.
The company’s current asset base is Ksh4 billion represented in various forms as permitted by the regulator.
Amaco is restructuring its balance sheet in order to meet its immediate genuine claims and liabilities.
When the court sanctioned the closure of the firm, the judge also appointed a receiver-manager who was tasked with overseeing the shutdown process.
“That Africa Merchant Insurance Company Limited is hereby liquidated under supervision of the official receiver and liquidator,” stated Justice Margaret Muigai.
The complainants had told the court that it was only fair that the company, which made an after-tax profit of Ksh75 million in 2019, be wound up because it had proved it could not settle its debt.
