Billionaire businessman Joel Kibe has filed a lawsuit against Old Mutual Holdings, seeking a buyout potentially exceeding Sh1 billion, accusing the insurer of favouring its majority shareholder, Old Mutual East Africa Holdings, at the expense of minority investors.
In a High Court filing in Nairobi, Kibe contends that the insurer has not fulfilled its promise to list on the Nairobi Securities Exchange and has taken large, opaque loans from its parent firm, some of which are being converted into shares, thereby diluting the value for small investors.
Kibe, who purchased 1.54 million shares for Sh290.9 million between July 2014 and June 2015, is requesting that the company buy back his shares with an 18 percent annual interest compounded over ten years or face liquidation.
Justice Josephine Wayua Wambua Mongare has issued a temporary order barring the insurer from dealing in its assets, contracting new debt, or transferring funds out of Kenya until a further mention of the case on September 30, 2024.
Joel Kibe’s lawsuit against Old Mutual raises serious questions about corporate governance. When promises to small investors are broken, the integrity of the market is put on trial.
