Ruto-linked Amaco risks auction over Sh19m debt

The Sh19 million debt is owed to a health clinic in Meru.

In Summary

•Africa Merchant Assurance Company Limited failed to persuade High court Judge Dorothy Chepkwony to suspend implementation of a judgement delivered by a lower court requiring the money be paid out to Mama Rael Memorial foundation.

•Amaco was to pay the money for breaching an insurance contract. 

Milimani Law Courts
Milimani Law Courts
Image: FILE

An Insurance company associated with Deputy President William Ruto is at the risk of having its offices raided by auctioneers in a bid to recover Sh19 million debt owed to a health clinic in Meru.

Africa Merchant Assurance Company Limited failed to persuade High court Judge Dorothy Chepkwony to suspend implementation of a judgement delivered by a lower court requiring the money be paid out to Mama Rael Memorial foundation.

Amaco was to pay the money for breaching an insurance contract. 

Aggrieved with the decision it filed an application at the High court seeking a stay pending appeal.

They argued that they would suffer substantial loss if the decision of the lower court is not suspended and that they have an arguable appeal with high chances of success.

They also mentioned to the court that they had changed advocates for purposes of conducting the appeal.

But Mama Rael opposed their application saying the court has no jurisdiction to determine the same issues that have been canvassed, heard and decided by the court.

Judge Chepkwony in her ruling said Amaco  sought to file an appeal out of time and no substantive explanation has been given for the delay in filing  the application

“In the absence of a proper explanation, this court's hands are tied from exercising its discretion,”

She said the question of the advocates being new does not hold water as the previous advocates are shown to have actively participated in the matter.

“Any party has a right to choose advocates of their choice to represent them but the same should not be used as a toll to prejudice the successful party from reaping the benefits of their judgement, as I believe in the case herein,” she said

The Court observed there has been unwarranted delay in bringing the application and Mama Rael who won should not be denied the opportunity to enjoy the fruits of its judgement.

Chepkwony added that for orders sought to be granted, several conditions must be met. One of them is that a party should be able to demonstrate substantial loss to be suffered, and that application has been brought without unreasonable delay.

“It is clear the issue of stay has been deeply litigated and this court cannot make any other orders regarding the same. I am not satisfied the applicant has made out a case requiring the grant of the orders sought. The application is dismissed,” she said

Mama Rael moved to court in 2018 after Amaco refused to pay the shs10 million claim which has now accrued interest and risen to Sh19 million.

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