This archive report was first published on 13 January 2020.
On January 13, 2020, businessman Rajesh Shah filed a lawsuit against Jubilee Insurance Company Ltd and Underwriting Africa Ltd over a Sh47 million debt paper issued by collapsed retail chain Nakumatt.
Mr Shah claims that he lent Sh47,753,386 to Nakumatt, which he never got back. He is seeking a balance of Sh38,806,803, plus nominal interest at 16.50 percent from the date he filed the case in 2017.
The businessman alleges that Jubilee Insurance Company Ltd insured the risk of the short-term notes of Nakumatt, and he had a policy with the insurer, which insured 80 percent of the money owed by Nakumatt.
However, Jubilee later notified Mr Shah that Nakumatt had entered into a contract with Underwriting Africa Ltd as the ultimate risk carriers.
Underwriting Africa Ltd, in its defense, claimed that it was merely a credit risk insurance broker and only acted as a liaison between the insured and Jubilee. It also stated that it does not insure any risks under any contract of insurance and is not obligated to settle any claims made by any persons insured under any policy of insurance.
Justice Francis Tuiyott, however, dismissed the application by Underwriting Africa Ltd demanding security and to strike out the case, saying some issues raised would come out better during the trial.
