Court Orders Closure of DP Ruto-Linked Insurance Company over Sh10 Million Debt

The High Court has ordered the dissolution of Africa Merchant Assurance Company (Amaco), an insurance firm linked to Deputy President William Ruto.

This came after the 22-year-old insurance company failed to settle a Sh10.2 million debt it owes to six individuals.

Justice Margaret Muigai ordered the official receiver to oversee process that will culminate in the shutting down of the insurance company.

The six individuals among them Elizabeth Karithi, Anisia Muthoni, Faith Muthoni and Silas Kinoti sued Amaco after it failed to pay claims related to accidents. Some of the claimants reported that the company issued bouncing cheques.

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

The six told the court that they had no other option but to wind up the company as attempts to attach its assets failed.

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

A 2019 report by Insurance Regulatory Authority (IRA) showed that Amaco had the highest cases of customer complaints due to delayed settlement.

Amaco closed the third quarter of 2019 with 1,649 cases of unsettled claims compared to 1,705 in the second quarter, during which 169 were settled.

The company posted a Sh75 million after-tax profit last year largely attributed to lower operating costs. DP Ruto is the majority shareholder of the company, according to reports.