Xplico Insurance faces liquidation lawsuit

By OTIATO GUGUYU
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Summary

• Dorice Mwaka Mwakwekwe filed for liquidation on March 17, which was released on Friday without giving details of her claim.
• Xplico Insurance faced a difficult operating environment and breached the regulator after the company failed to disclose its full financial statements for the fourth quarter ended December 2021.
• The company has also seen a decline in business over the past year, in addition to boardroom wrangling over ownership.

A creditor has gone to court to seek liquidation of Xplico Insurance over an undisclosed debt, adding to the company’s woes.

Dorice Mwaka Mwakwekwe filed for liquidation on March 17, which was released on Friday without giving details of her claim.

Xplico Insurance faced a difficult operating environment and breached the regulator after the company failed to disclose its full financial statements for the fourth quarter ended December 2021.

The company has also seen a decline in business over the past year, in addition to boardroom wrangling over ownership.

“Notice is given that a petition for liquidation of the above-mentioned company by the High Court has been made on 17th March 2022 to the said court by Dorice Mwaka Mwakwekwe and the said petition is due to be heard in the High Court sitting at Malindi on the 9th June 2022” , says the notice on Kenya Gazette.

“Any creditor or contributor of the said company desirous of supporting or objecting to the making of an order on the said petition may appear at the hearing in person or by his lawyer for this purpose and a copy of the petition will be furnished. by the undersigned to any creditor or contributor of the said company.

Xplico Insurance has seen a decline in business over the past year, in addition to boardroom wrangling over ownership that has spanned nearly a decade.

In the third quarter, utility vehicle owners abandoned the company, reducing its market share in the category by nearly two-thirds, from 21.9% to 7.5%.

The biggest winner

The biggest gainer from the crisis at Xplico was Directline Insurance, which reached 69.6% of the market in September.

In the fourth quarter, Xplico had the most customer complaints at 26, indicating the company’s inability to resolve customer complaints on time.

The company is now facing liquidation action from creditors at a time when the insurance market has been rocked by the collapse of Resolution Insurance which was placed under statutory management after shareholders failed to recapitalized the company.

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