Company Linked to DP William Ruto Implicated in Corruption Scandal Involving Millions of Shillings

An insurance company linked to Deputy President William Ruto has been implicated in a corruption scandal involving millions of shillings.

The Daily Nation reports that Africa Merchant Assurance Company (AMACO) is being investigated over a multi-million-shilling contract awarded illegally by the Kenya Pipeline Company (KPC).

The publication says that KPC awarded the contract to Amaco without following the required tendering process.

The company is reported to have been brought on board midway and awarded 30 percent of the multi-million-shilling contract for KPC’s “All Risk Industrial, Terrorism and Sabotage Cover.”

Documents show that the contract had initially been won by CIC Insurance after a competitive tendering process and was to run from June 1st, 2016, to June 30th, 2019.

Three months later, Sedgwick Kenya Insurance Brokers, a firm that represented KPC, asked KPC if they could give 30 percent of the business to Amaco.

Former KPC Managing Director Joe Sang later authorized Sedgwick to give Amaco 30 percent of the contract to Amaco.

Consequently, CIC was left with 70 percent of the deal and assumed the role of lead underwriter.

On August 9th, 2018, Amaco is said to have billed KPC through six different debit notes some Sh7.6 million in premiums.

On August 16tb, 2018 the firm billed two additional debit notes worth Sh2.2 million.

The Directorate of Criminal Investigations (DCI) is investigating the irregularities in the contract and payments made to Amaco.

DCI George Kinoti summoned KPC Chairman John Ngumi on January 31st to shed light on the irregularities in the process.

DP Ruto is reported to be the majority shareholder of Africa Merchant Assurance Company (AMACO).