United Insurance owner arrested for forceful firm takover bid from receiver

One of the owners of United Insurance Peter Mwangi and two ex-workers were arrested for forceful takeover of the firm from Kenya Re Insurance, the statutory manager.

By OTIATO GUGUYU
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Summary

• One of the owners of United Insurance Peter Mwangi and two ex-workers were arrested for forceful takeover of the firm from Kenya Re Insurance, the statutory manager.
• Mr Mwangi, Mr Charles Mwangi and Mr Godfrey Kamau are said to have stormed Kenya Re Insurance, demanding back the company that has been in receivership for 15 years.

Mr Mwangi, Mr Charles Mwangi and Mr Godfrey Kamau are said to have stormed Kenya Re Insurance, demanding back the company that has been in receivership for 15 years.

Sergeant David Kairu attached to the Insurance Fraud Investigation Unit said they were acting on an advisory from the Attorney-General office for the owners of the firm and the Insurance Regulatory Authority (IRA) to settle the row over its winding up out-of-court.

“They arrived and after being ushered into the pperations manager’s office, turned rowdy demanding that he vacates the office immediately. The operations manager on sensing danger excused himself, closed the door and immediately called our office for assistance,” said IRA in statement quoting Mr Kairu

“They were acting on the basis of an opinion given by the Solicitor-General regarding the winding upcase that is in its advanced stage in court,” he said.

The Business Daily was unable to get the Solicitor-General’s opinion.

United insurance was placed under management in 2005 after it was unable to maintain its operations. The regulator is trying to wind up the company to pave way for payment of policyholders under the Policyholders Compensation Fund (PCF).

Thousands of policyholders in have waited years to receive their payouts even after the Fund was set up in 2005 to cushion holders of insurance policies in the event that companies are unable to discharge their services.

Some of the firms which have gone under over the years are Blue Shield Insurance, United Insurance Company, Standard Assurance Company and Concord Insurance Company.