The High Court has sanctioned the winding up of Africa Merchant Insurance Company (Amaco), an insurance firm associated with Deputy President William Ruto.
Justice Margaret Muigai ordered the liquidation of the company after failing to pay a debt of Sh10.2 million demanded by six people.
The Judge ordered the official receiver to oversee the process and eventually wind up the insurance company.
Elizabeth Karithi, Anisia Muthoni, Faith Muthoni, Silas Kinoti, Abel Mwaniki and John Mwangi moved to court seeking that Africa Merchant Assurance Company be liquidated under the supervision of the official receiver.
They also sought that the directors of the company be ordered to personally satisfy such liabilities of the company as shall remain outstanding and owing after liquidation of the company.
In the petition before Justice Muigai, the six said the company has refused to pay and in some instances, issued bouncing cheques. The court also heard that the judgments and decrees obtained by the six have served on the company and have never been set aside nor appealed.
They also revealed that plans to attach the company’s properties have been unsuccessful, leaving them with no other option but to wind up the company.
“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 petitioner’s said.
“That Africa Merchant Insurance Company limited is hereby liquidated under supervision of the official receiver and liquidator,” the Judge directed.
Through Lawyer Karigi Mugendi, the five told the court that the judgment was entered in their favour in the various courts directing the company to pay the Petitioners a total sum of Sh 10,235,552 plus costs and interest.
They said their attempts to attach properties of the company to get their money have all come to naught as the auctioneers have returned the warrants unexecuted. The warrants have been attached to the verifying affidavit of Elizabeth Wawira Karithi in support of this petition.
“To date, the decrees remain unsettled and continues to accrue interests and no plausible reason in law has been given by the company for failing to pay the decretal sum. Indeed the company’s directors have adopted a rather carefree attitude and appear to abuse the Petitioner’s goodwill in the matter”, they told the court.
They added that the decretal sum is not disputed and has been due and payable in full since the decrees were issued and the statutory notice dated 6th February 2020 served upon the company.
The company has despite several demands, including insolvency statutory notice dated 6th February 2020 refused or neglected to pay the decretal sum.