NAIROBI, Kenya, May 11 – The Kenya Motor Repairers Association (Kemra) has sued Xplico Insurance Company over failure to pay debts amounting to over Sh24million to contracted garages.
Documents filed in Milimani High Court show that the firm owes 11 Kemra members over Sh24 million.
Kemra, entered an agreement with Xplico Insurance Company to repair their clients’ motor vehicles involved in accidents, upon authorization.
In the contract, they were to be paid after satisfactorily offering repair services.
In the suit filed at Milimani Commercial Courts, Kemra has also sued Insurance Regulatory Authority (IRA) as an interested party for its role as the regulator.
In a sworn affidavit, through Koceyo & Company Advocates, Kemra Chairman Bernard Ngore says the Xplico Insurance Company is unable to meet its financial obligations to the Association.
“There is a real threat and apprehension that 11 Kemra members may lose their monies in the event that the Xplico Insurance Company fails to survive and is placed under statutory management as is the practice in the industry,” Ngore adds.
Kemra says the defendant will continue to abscond its duty and obligations unless the court intervenes urgently.
The lobby group says that attempts to demand payments for the debts owed went futile.
Kemra filed the suit on April 27, 2016, and mentioned on May 4, 2016, on behalf of Beca Auto Ltd, Crystal Motors, Golden Auto Centre, Midland Auto care, Naivaboch Auto Electrician, Safezone Auto Care, Stantech Motors, Top Quality Motors and Vas Auto Centre.
The lobby body Advocates also asked the court to compel Xplico to deposit ‘Security cost,’ amounting to Sh24 million in court before the suit is heard and determined.