Business

Amaco Insurance faces liquidation

Amaco Insurance faces liquidation
  • From the notice, the reason behind the petitioners' move to liquidate the firm was not immediately clear.

Twenty-year old Africa Merchant Assurance Company (Amaco) risks closing its doors after seven people filed a petition at the High Court seeking its liquidation.

In a Kenya Gazette notice dated December 16, law firm B.W. Kamunge & Company has invited other claimants to join the petition against the underwriter associated with Deputy President William Ruto that will be heard on January 30, 2020.

“...a petition for the liquidation of the above mentioned company by the High Court was on the 7th November, 2019, presented to the said court by Beth Wairimu Kahara and another and 6 others," the notice said.

“Any creditor or contributory of the said company desirous to support or oppose the making of an order on the said petition may appear in person of by his advocate for that purpose,” the law firm said, adding that a copy of the petition will be furnished by the petitioners’ advocates to any creditor or contributory of Amaco at a fee.

From the gazette notice, the reason behind the petitioners' move to liquidate the firm was not immediately clear.

Earlier in June, auctioneers acting on behalf of Mama Rael Medical Clinic had raided Amaco's offices along Mombasa Road, Nairobi over a Sh15 million debt.

CUSTOMER COMPLAINTS

According to a recent Insurance Regulatory Authority’s (IRA) report, Amaco - along with Invesco Assurance - closed the year with the highest cases of customer complaints due to delayed settlement.

Last year, Amaco realised a Sh75 million after-tax profit mainly boosted by lower operating costs with liabilities decreasing 17 percent to stand at Sh1.8 billion compared to Sh2.1 billion the previous year.

The firm drew up to 62.6 per cent of its business worth Sh2 billion from motor premiums.

Amaco controls a 1.69 percent share of the insurance market.

It began full operations in the year 2000 and is currently headed by Elizabeth Koskei.