Creditors of collapsed insurer United Insurance Company Limited have been given a fresh opportunity to formally lodge their claims nearly 20 years after the insurer was placed under statutory management.
The court-appointed liquidator, Kamal Anantroy Bhatt, has called a meeting of creditors on September 11, 2026, at the Kenyatta International Convention Center (KICC) in Nairobi the elect a creditors’ committee to represent claimants during the winding-up process.
Creditors have also been directed to submit Proof of Debt forms before the August 21 deadline to participate in the process.
“The Liquidator of United Insurance Company Limited (in liquidation) hereby notifies all Creditors of the Company that have not completed and returned their Proof of Debt Forms to do so without any further delay,” the notice stated.
The development comes more than two decades after the Commissioner of Insurance petitioned the High Court to wind up the company in 2006 over persistent regulatory breaches and insolvency concerns.
In a judgment delivered on July 12, 2024, Justice Alfred Mabeya lamented the lengthy delay, describing the matter as a “sad story” and an indictment of the slow pace of justice.
According to court records, when United Insurance was placed under statutory management, it had admitted assets worth approximately Ksh475 million against liabilities estimated at Ksh2.25 billion, leaving it deeply insolvent and unable to meet its obligations to policyholders and other creditors.
The latest notice targets a wide range of creditors, including policyholders with court decrees, road accident victims, claimants with pending court cases, former employees, advocates, medical experts, investigators and other service providers who are owed money by the company.
Long wait for compensation
For many claimants, the process has become a test of patience stretching over two decades.
The High Court noted that policyholders, claimants and creditors may have spent years waiting for compensation without a resolution as the winding-up case moved slowly through the courts.
The liquidation order was eventually issued in July 2024 after nearly 18 years of litigation.
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Following the liquidation order, the Policyholders Compensation Fund (PCF) announced in August 2024 that it had begun compensating eligible policyholders and claimants of United Insurance.
The fund said compensation would be capped at Ksh250,000 per claim in accordance with statutory limits and directed affected individuals to submit claims through its online portal.
However, payments from the liquidation estate continue to be a controversial topic.
Court proceedings also revealed growing dissatisfaction among some creditors, who accused the liquidator of incurring significant expenditure without consulting them while no distributions had been made to ordinary creditors.
The liquidator denied wrongdoing and told the court that claim verification was still ongoing and that payouts had been delayed by court processes.
United Insurance Creditors Committee Takes Center Stage
The election of a creditors’ committee is expected to play a crucial role in the next phase of the liquidation.
Under insolvency procedures, such committees represent the interests of creditors, monitor the conduct of the liquidation, scrutinize expenses and provide oversight on matters relating to asset disposal and eventual distributions.
The committee’s formation comes at a time when questions are being raised about the management of the liquidation process. In court filings, some creditors sought the removal of the liquidator, alleging that more than Ksh151 million had been spent without adequate creditor involvement.
The liquidator has maintained that all expenditures were properly documented and disclosed.
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Creditors who fail to submit Proof of Debt forms risk missing out on future distributions if the court eventually imposes a final deadline for filing and verification of claims.
The liquidator has warned that unfiled claims could be barred from settlement once a cut-off date is established.
The winding-up case is scheduled to return to the Milimani Commercial Courts on September 28, 2026, where further directions are expected as the liquidation enters another critical stage.
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