KENYA FERRY LOSES MILLIONS TO RUTO LINKED FIRM

Kenya Ferry Services risks losing multimillion property to auctioneers after a bad deal made with a company associated with Deputy President William Ruto.

The agency had been contracted Africa Merchant Assurance Company Limited (Amaco) to provide insurance services for accidents as vehicles board the ferry. 

During the ferry operations, a lorry valued at Ksh5.2 million fell off the boarding rack and onto the Indian Ocean. 

After the accident which left Madale Trucking counting losses, Amaco and the trucking company reached consent to settle the case through monthly payments of the awarded damages.

Entrance into Mombasa law courts.TWITTER

However, the deal fell off after Amaco started struggling with liquidity and a new ruling in 2020 allowed Madale Trucking to attach KFS property to settle the outstanding amount of money it was to be paid.

The KFS lost its bid to toss out a judgment requiring it to pay the trucking company Ksh5.2 million for a lorry that sunk in the Indian Ocean.

Making his ruling at the High Court in Mombasa, Justice Eric Ogola stated that KFS had not provided sufficient grounds to compel the court to set aside orders that were issued earlier.

The court ruled that Madale Trucking Company Ltd provided evidence to show that the documents were served to KFS.

Madale Trucking wanted to attach KFS assets such as seats, computers and a boardroom table with its seats to recoup its finances during an auction. 

But KFS wanted the court to set aside the judgment and dismiss the Madale Trucking application. KFS argued that Madale had extracted the order without following the proper procedure.

In 2019 seven people filed a petition in the High Court seeking Amaco to be declared bankrupt over sustained inability to meet its financial obligations. 

“A petition for the liquidation of the above-mentioned company by the High Court was on the 7th November 2019, presented to the said court by Beth Wairimu Kahara and another and 6 others,” a gazette notice read.

A report by the Insurance Regulatory Authority’s (IRA) indicated that Amaco had the highest cases of customer complaints due to delayed settlements. 

In 2009, Ruto admitted being a shareholder at Amaco after the firm was linked to the infamous maize scandal. He, however, denied the company had been involved. 

“For the record, let me state that Amaco, a company in which I own shares did not apply, tender, supply or procure gunny bags and has no financial dealings with the NCPB; it has no relationship of whatever nature with the NCPB. That is the correct position,” he stated. 

By Kenyans