Connect with us

Hi, what are you looking for?


Old Mutual sued for breach of contract

NAIROBI, August 29 – A policyholder with Old Mutual Life Assurance Company has moved to the High Court seeking judgment over an alleged breach of contract.

Edwin Cheruiyot Kipmutai sued the insurance firm for allegedly failing to honour a 16-month contract amounting to Sh3.2 million.

He claims that he entered into a Personal Financial Contract (PFC) with a Regular Premium Savings Benefit (RPSB), in which he invested Sh200, 000 on a monthly basis between September 1, 2006 and April 1, 2008, and which the company has since breached.

Kipmutai claimed that after the expiry of the contract, Old Mutual rejected his request to abandon the contract, in which he had invested Sh3.2 million shillings by April this year.

Through Kilonzo and Company advocates, Kipmutai told the court that he applied for his dues in April, but the company deliberately refused to honour.

He alleged that the insurer had wrongly and unjustly enriched itself with returns from his hard-earned investment.

According to the complaint, Kipmutai said he was lured into entering the contract by the company’s agent named Rajab Njoroge, who explained numerous portfolios managed by the assurance company.

He further claimed that the company deliberately refused to admit liability or make good his claim even after being served with a notice of intention to sue.

It was argued that the businessman did not agree to any other terms but he was not forewarned of any other conditions for his investment other than the alleged presentations made by the agent.

Advertisement. Scroll to continue reading.

The aggrieved businessman laid among other prayers a judgment against the Sh3.2 million, an account payment of the returns realised from his investment for the 16 months, together with interests accrued from the date of filing the suit until payment in full.

Major highlights of the contract in question as stipulated in the court papers provided that Kipmutai would make monthly investments described in the contract for (PFC), named ‘Regular Premium Savings’ which had an open end date.

It is stated that under the regular savings benefits schedule, his premium would be invested in units of the company’s balanced portfolio fund.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...