Market News

Case To Liquidate Amaco Withdrawn By The Petitioner

BY Juma · January 28, 2020 02:01 pm

The case that had been presented in the High Court to shut down the Africa Merchant Assurance Company (AMACO) has been withdrawn.

The case was set to kick off on Thursday 30, 2020 but the petitioner, Beth Kihara, has withdrawn the case, putting to an end claims that the company was going down.

Late 2019, Amaco refuted claims that were doing rounds on social media that a case to wind it up had been presented in court, terming the information fake news.

“We would like to assure our customers and the general public that we have not filed for bankruptcy proceedings contrary to an article circulating on social media. We have not been served with any notice or court or court proceedings on the same.” Said Amaco then.

READ: Creditors File For The Liquidation Of Amaco Insurance

The company has been accused in the past of failing to settle claims for various clients leading to seven creditors filing a petition to have it liquidated.

Ms. Kihara and six others had filed the winding-up petition, calling other creditors to join the class suit against Amaco. It is not yet clear why the creditors have decided to withdraw the case.

In 2019, auctioneers acting on behalf of Mama Rael Medical Clinic raided Amaco’s offices on Mombasa Road, Nairobi over a 15 million shilling debt that the company is said to have declined to pay.

Delisting Insurance Brokers

The Insurance Regulatory Authority (IRA) has said that it is compiling a list of newly-licensed insurance brokerage firms in a move that will see over half of the 213 insurance firms listed lose licenses.

According to IRA, the insurance brokerage firms that will be delisted have not complied with the new tough license renewal conditions in the Insurance Act.

One of the major reasons why the IRA will delist some of the firms is because most of the firms had not remitted all outstanding premiums owed to insurance firms.

The Association of Insurance Brokers Kenya (AIBK) has since confirmed that IRA had declined to renew the licenses of some of its members who had not cleared outstanding premiums.

READ: IRA to Delist over Half of Insurance Brokerage Firms in Kenya

About Juma

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.(020) 528 0222 or Email: info@sokodirectory.com