DP William Ruto company auctioned over Sh 19 Million NGO debt
DP William Ruto AMACO insurance debt

William Ruto, deputy president and Kenya Kwanza coalition presidential nominee, has plunged into trouble.  Amaco, an insurance company associated with him, may be auctioned over a Ksh19 million debt to a non-profit after its plea was time-barred.

The insurer has fought numerous attempts to liquidate it. Six persons petitioned the High Court in 2020 to close the 24-year-old firm.

Africa Merchant Assurance Company requested the High Court to block Mama Rael Memorial Foundation from demanding Ksh19 million or auctioning the assets pending an appeal.

Amaco said Justice Dorah Chepkwony had filed an "arguable" appeal against a May 23, 2019 magistrate's order allowing the Foundation to demand the sum.

The NGO can now sell the company, putting the latest insurer in peril after Resolution, which folded with Sh6.6 billion in client cash.

The insurance company also sought to switch from Ong'anda & Associates to Kihima & Koech. It wanted its late appeal to be considered valid.

Justice Chepkwony rejected the request, saying Amaco failed to present a substantive justification for the delay.

"Amaco's appeal of a lower court judgement was filed on January 31, 2022. This exceeded the Civil Procedure Act's 30-day limit, stated Justice Chepkwony.

Without a convincing justification, the court decided it couldn't help Amaco since it had applied too late. The judge said Mama Rael Memorial Foundation shouldn't be denied its judgement.

She noted that Amaco didn't prove it had a strong appeal. The insurance company said it would lose a lot if court instructions were carried out.

The judicial case began in 2018 when Amaco breached an insurance contract by not paying the Foundation. The Foundation signed a Performance Bond arrangement with Amaco in March 2016.

Amaco's major requirement was to provide Ksh10.5 million as security for compliance with another Foundation agreement with Newspace creators Ltd.

The construction company failed to finish the Foundation building in seven months. The Foundation issued a default notice afterwards.

Amaco was required by law and contract to pay the promised amount if the contractor didn't finish the job. The magistrate court awarded the Foundation the stipulated monies plus 12% annual interest.

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