Creditors demand removal of United Insurance liquidator
Business
By
Kamau Muthoni
| Jul 30, 2026
The liquidator appointed by the High Court to manage the folding of United Insurance was yesterday asked to explain the expenditures incurred during his tenure.
Kamal Anantroy Bhatt, who was appointed in 2024 appeared before Commercial High Court Judge Francis Gikonyo and was questioned on whether he had the green light from the creditors to draw his salary and pay Sh20 million to a law firm, 10 days after his appointment.
Bhatt informed the court that each coin spent under his leadership was well documented and he was ready to present the details to the court if asked to.
The liquidator was appearing before the court following two applications filed by lawyers Wanjiku Ithondeka and Charles Kihara, who, on behalf of the creditors, claimed that he had allegedly spent atleast Sh151 million without involving them. According to the lawyers, the Policy Holders Compensation Fund (PHCF) handed Bhatt around Sh340 million and properties worth Sh5 billion.
However, they claim that Bhatt went ahead to withdraw Sh5 million as salary, yet he did not have the authority to do so.
READ MORE
Why Ruto rejected Public Procurement (Amendment) Bill, 2024
Kenya shines at Zone Individual Chess Championship in Ethiopia
Police-linked brutality victims in court, claim opaque compensation process
Safe but scared...: Tales of Mathare floods survivors
Inside huge cash withdrawals from affordable housing kitty
Prof Mutua should face MPs for grilling on victims payouts
Government should address issues raised by young people without resorting to intimidation
Subaru driver in a dramatic high-speed chase after alleged hit-and-run in Nairobi
The liquidator responded that in voluntary winding up cases, he is expected to draw Sh100,000 for the first Sh1 million and charge 10 per cent of the total value of the assets.
In contentious winding up cases, such as the United one, he salary was to be Sh150,000 for the first Sh1 million and 10 per cent of the remainder. He claimed that the amount he is charging for the legacy insurance firm winding-up process was far below the required amount.
“My fees are Sh5 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,” he argued.
Bhatt further responded on the Sh20 million paid to a law firm, which he insisted it was a down payment demanded by the law firm and there was an invoice as evidence.
“The day we took over, there were ongoing cases. We could not take previous lawyers and so we engaged the law firm which asked for that deposit. All these payments are through RTGS,” claimed Bhatt, adding that he will render an account of all the fees and expenses incurred.
In the case, United Insurance want Bhatt kicked out as the liquidator and another official receiver appointed to continue with the process. The insurer claimed that none of the creditors had received their claims from him since he took over.
While denying any wrongdoing, Bhatt insisted that he had diligently managed the process, adding that the High Court had blocked the payouts. He said that the verification of claims were also still ongoing.
The insurer's troubles trace back to when it was declared bankrupt with only Sh110,000 cash in part but with a staggering Sh2.2 billion in liabilities, a weight that ultimately led to its demise 36 years later.
The firm had invested in lands that it could not sell back for survival.
Three moratoriums to allow the statutory managers to try to keep it on the drips to see if it could survive were issued before Commercial Court Judge Alfred Mabeya ordered the insurer to wind up. However, in the end, its liquidity ratio was way below the accepted.
Also, the insurer had issued unsecured loans to directors and shareholders who in return failed to payback the loans.
During its heydays, the firm dealt with life, fire, marine, accidents, employer liabilities and workman's compensation diseases.
At the same time, it was licensed to insure sickness survivorship, burglary, theft fidelity and
transit insurance.