A petitioner has withdrawn the case to shut down Africa Merchant Assurance Company (Amaco) which was set to start this Thursday.
Beth Kihara has registered consent with the court, walking back her earlier attempt to wind up the underwriter that has been accused of failing to settle claims.
“That by consent of both parties the Statutory Demand … against Africa Merchant Assurance Company Limited herein be and is hereby marked as withdrawn with no orders to costs,” read a notice in the latest Kenya Gazette.
Ms Kihara and six others had filed the winding-up petition, calling other creditors to join the class suit against Amaco.
The company headed by Ms Elizabeth Koskei has fallen into financial troubles that have seen it delay in settling claims, with some creditors using auctioneers to press for payments.
Last year, auctioneers acting on behalf of Mama Rael Medical Clinic had raided Amaco’s offices on Mombasa Road, Nairobi over a Sh15 million debt.
Thinly capitalised insurance firms with cases of customer complaints due to delayed settlement are facing angry creditors who have resorted to wind them up over debts.
According to a recent Insurance Regulatory Authority’s (IRA) report, Amaco closed the third quarter of 2019 with 1,649 outstanding claims, having settled only 215 during the period.
Invesco Insurance had 4,623 outstanding cases after settling 544 cases.
Invesco is facing liquidation in court after nine claimants, who had successfully sued the insurance firm for a total sum of Sh9 million plus costs and interests, have now returned to court after the company failed to pay.