DP Ruto’s AMACO Insurance ‘dead’ broke one month after Fred Matiang’i cancelled government tenders of underperforming insurance companies

    Africa Merchant Assurance Company Insurance (AMACO), a company linked to the Deputy President William Ruto has filed for a liquidation the High Court of Kenya Commercial and Admiralty Division, Nairobi.

    In a notice published on December 27 Kenya Gazette, any creditor or contributory of AMACO has been asked to appear in court for the hearing set for January 30, 2020.

    The proposal to liquidate the company was presented by Beth Kihara and six others.

    Massive debt

    This new development comes months after auctioneers raided the insurance firm and made away with office furniture over a Ksh15 million debt it owes to Mama Rael Medical Clinic.

    Property worth Sh100,000 was seized by auctioneers in Nyeri over the debt. Auctioneers stormed a branch of Africa Merchant Assurance Company (Amaco) and carried away furniture and machines worth over Sh100,000.

    Mr Ruto is said to have interest in the loss-making insurer which has in the past two years struggled to return to profitability. Armed with a court order, police officers and auctioneers forced their way into the office along Gakere Road and carted away property.

    CS Matiang’i cancels lucrative tender

    Speaking at an event set to honour fallen police officers, CS Fred Matiang’i threatened to cancel government tenders given to insurance companies that don’t deliver as mandated by the National Police.

    “In consultation with the AG, we will cancel contracts of underperforming insurance companies. We shall only deal with firms and services providers who value the work we do. Widows and widowers of police officers who have died in the line of duty will no longer be denied services they deserve,” said CS Matiang’i.

    And as promised DP Ruto’s AMACO, a insurer of the National Police was caught up in the blander, AMACO allegedly failed to pay widows and orphans of police officers who lost their lives in the line of duty as contracted.

    AMACO insurance and Nairobi County Government

    AMACO insurance has not only been on the wrong side over the deal with the National Police but also a fishy tender they won with Nairobi County Government as well.

    Speaking on the Pointblank show hosted by Tony Gachoka two months ago, Nairobi County Governor Mike Sonko rebuffed claims that the payment he made to the insurance company smacked of corruption.

    According to Sonko, the Nairobi County government entered into a contract with the insurance company even before he became the governor.

    He further rejected claims that the award of the tender was flawed, saying that Amaco was subjected to a competitive and rigorous process before the tender was awarded.

    Interestingly, company defended itself on the Sh187 million tender with the Nairobi County Government.

    EACC had summoned AMACO CEO Elizabeth Koskei over a trail of money they claim that was paid to embattled Nairobi County Governor Mike Sonko by a company that had been subcontracted by AMACO.

    EACC had sought to learn of the Sh20million AMACO had paid to Arbab Auto Care Ltd, a company that AMACO was doing business with was wired to Nairobi Governor Mike Sonko’s account.

    On June 30, 2016, Amaco entered into a contract with  Arbab Auto Care Ltd, which runs a garage where the county government’s vehicles are taken for repairs.

    On May when the Nairobi county paid the insurance firm,  they paid Arbab alongside other firms as part of payment for garage and towing services.

    Amaco Chief executive officer Elizabeth Koskei told the detectives at EACC that her insurance firm had never been involved in fraudulent activities and adversely mentioned when it was not involved in the transaction to Sonko.

    “We are doing a clean business with the county government, we have done this for seven years now, even before Sonko was elected to the helm of the county government,” said Ms Koskei.

    Ms. Koskei said they won their first contract with the county in 2013 to insure all their vehicles and buildings at a insurance sum of sh40billion.

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