The High Court ordered a travel agency named Hubaal Travel Agency to repay Ksh 60 million to the IATA insurer due to a contract violation.
The High Court orders Hubaal Travel Agency to remit Ksh 60.3 million to the insurer of the International Air Transport Association (IATA) for unaccounted ticket sales.
Justice Josephine Mongare found Hubaal and its directors, Abdullahi Ahmed Kanyare and Mohamed Abdi Omar, in breach of contract for failing to remit funds from ticket sales collected between December 2018 and March 2019.
Saham Assurance Company, representing IATA, contended that Hubaal failed to meet its responsibilities under a passenger sales agreement, which mandated the agency to remit ticket sales and maintain transparent records.
After multiple attempts to address the non-compliance, including issuing a default notice in January 2019, IATA terminated the contract in March 2019.
Saham, as IATA’s insurer, covered losses from Hubaal’s default under a default insurance policy, which enabled Saham to seek reimbursement from Hubaal under the doctrine of subrogation.
Justice Mongare upheld Saham’s claim, stating that Saham had the right to recoup the funds from Hubaal after compensating IATA.
