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Company Linked to DP Ruto Wins ksh190 Million Tender

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An insurance firm associated with Deputy President William Ruto has bagged a fat deal worth Ksh190 million with the Nairobi County preceding its cancellation by procurement regulator in 2020.

The insurance company, Africa Merchant Assurance Co Ltd (AMACO), won the tender after several court battles with two other companies, Britam General Insurance and Madison General insurance, which had disputed the decision by Nairobi County to award the lucrative deal to the company closely linked to the DP.

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AMACO insurance company logo.

However, in a court verdict that ruled against the two companies, Justice Pauline Nyamweya reproved the move by Public Procurement Administrative Review Board to cancel the tender awarded to AMACO saying that it was incapacitated under the law to do so.

“The ex parte Applicant (AMACO) is therefore entitled to the orders sought of certiorari to quash the said decision, in light of the applicable principles as regards the grant of this remedy,” the Judge said.

This tender offers a reprieve to AMACO insurance company which has been battling bankruptcy following a Ksh10 million debt owed to six individuals.

The court had warranted the shutdown of the company in November 2020 after failure to endow the money owed to six individuals which included Elizabeth Karithi, Anisia Muthoni, Faith Muthoni, and Silas Kinoti. The six claimed that AMACO issued them with bouncing cheques which made their transactions unsuccessful.

Luckily, the court discarded the case after the payment of Ksh4.3 million to the individuals and an agreement to settle the debt in due time.

“Whereas the company has outstanding liabilities, we remain committed to settling all the genuine ones as per our contractual obligation. From 2017 to date, AMACO has paid out a total of Ksh4 billion in claims and legal liabilities despite the prevailing economic conditions,” the firm explained at the time.

The post Company Linked to DP Ruto Wins ksh190 Million Tender appeared first on LitKenya.



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