The liquidation process of United Insurance Company Limited, which has over the years stalled due to protracted court battles and fierce opposition from lawyers representing shareholders and creditors, may finally be on the horizon after the High Court provided clear direction on the matter, ordering the liquidator to convene a creditors' meeting within two weeks.
The court directed that the meeting be held physically on September 11, 2026, at the Kenyatta International Convention Centre (KICC) in Nairobi, with creditors also allowed to participate virtually, while further directing the liquidator to file an index of all reports within 14 days.
The ruling by Justice Gikonyo has effectively broken the stalemate that has seen the liquidation of the collapsed insurer drag on for years, with the court affirming the liquidator's authority to continue drawing his fees and proceed with the winding-up process despite persistent attempts by certain lawyers to have him removed.
The liquidator, Kamal Anantroy Bhatt, appeared before the court following applications by shareholders and creditors seeking his removal and the appointment of the official receiver to take over the liquidation, with lawyers Wanjiku Ithondeka, representing shareholders, and Charles Kihara, acting for some creditors, leading the charge against him.
The lawyers accused Bhatt of spending at least Ksh 151 million without adequate consultation and questioned his monthly remuneration of Ksh 5 million, with Kihara demanding to know whether the liquidator had the authority to draw such an amount.
Bhatt, however, defended his fees, stating that they were reasonable and below what he was entitled to charge under applicable rules, explaining that a liquidator in a voluntary winding-up is entitled to Ksh 100,000 for the first Sh1 million and 10% of the total value of assets, while for contentious winding-up proceedings such as United Insurance's case, the applicable fee is Ksh 150,000 for the first Sh1 million and 10 per cent of the remainder.
"My fees are Ksh 5 million exclusive of VAT per month. I consider them reasonable and in some cases below industry average. In exercising discretion on my remuneration, I considered the amount of work to be done in this liquidation," Bhatt told the court.
The court, however, appeared unpersuaded by the arguments against Bhatt, with Justice Gikonyo stating that the liquidator should continue drawing his fees and proceed with the liquidation process.
The judge also agreed with Bhatt's definition of a creditor in liquidation, affirming that a creditor is one who has filed a proof of debt form with the liquidator or his team, a determination that dealt a significant blow to Kihara and his colleague H. Kinyanjui, who have to date not filed a single proof of debt form with the liquidator.
This revelation exposed the true nature of the opposition against Bhatt, suggesting that the lawyers challenging his authority are not even recognized as creditors under the law, raising serious questions about their standing to demand his removal.
Bhatt told the court that he had convened a creditors' meeting on October 2, 2025, begun verification of claims, and started processing payments before the process was stopped by court orders, with creditors at that meeting having authorised the sale of the insurer's properties to settle all verified claims.
The liquidator explained that the valuation of the company's properties had taken considerable time because more than 350 title deeds had to be assessed before a comprehensive report could be prepared, with the last valuation conducted on the insurer's properties being a desktop valuation carried out in 2014, whose reports were submitted in a flash disk to the High Court through lawyers representing the creditors and shareholders.
"I have done my best to update the creditors and process payments. I had started processing payments but was stopped by the court," Bhatt told the court.
One of the most significant revelations to emerge from the proceedings was the existence of a Sh141 million recovery claim filed by the liquidator against George Kariuki over compensation funds from the Standard Gauge Railway (SGR) belonging to Fidei Holdings Limited, a subsidiary of United Insurance.
The liquidator disclosed that he does not have control of Fidei Holdings despite it being a 99.8% subsidiary of United Insurance, with BRS reportedly stalling the removal of directors and secretary.
Justice Gikonyo directed the liquidator to make an application for an order against BRS to gain control of Fidei Holdings, with the liquidator's lawyers instructed to fast-track the process.
The creditors and shareholders have claimed that the Policyholders Compensation Fund provided Bhatt with about Ksh 340 million and properties valued at approximately Ksh 5 billion to facilitate the liquidation, but they have accused him of spending millions without adequate consultation.
These allegations have been met with strong rebuttals from Bhatt, who has maintained that all invoices and payments are properly recorded in the files filed in the High Court and has adduced the requisite invoices to support his claims.
The liquidator also told the court that he would require two weeks to convene another creditors' meeting but needed funds to place advertisements in two newspapers and secure a venue, with the case set to be heard on September 28, 2026.
The notice of the creditors' meeting, which was published on August 3, 2026, has invited all creditors of United Insurance to attend the meeting at KICC on September 11, 2026, starting from 10:00 a.m., for the purpose of electing seven creditors to constitute the creditors' committee.
Creditors eligible to vote at that meeting are those who have completed and returned their proof of debt forms to the liquidator in the prescribed form on or before August 21, 2026, with proof of debt forms available for collection at the liquidator's office or via email upon written request.
The liquidator has warned all creditors who have not completed and returned their proof of debt forms to do so without further delay, as the High Court has the power and jurisdiction to bar all claims not received by the liquidator for verification after a specified date.
The court has made it clear that the liquidation process must proceed, and that the opposition from certain lawyers, who have not even filed proof of debt forms, will not be allowed to derail the process any further.
Justice Gikonyo has affirmed the liquidator's authority and directed him to move forward with the meeting, sending a clear message that the prolonged legal battles must come to an end.
The case will be heard on September 28, 2026, and all eyes will be on the court as it determines the next steps in the long-awaited liquidation of United Insurance Company Limited.
