Nakumatt has been dealt a blow in their case against Kenindia Insurance after a key defendant was proposed to turn up as a witness.
The Insurance Regulatory Authority (IRA) might now be called as a witness in a Sh181 million claim dispute pitting Nakumatt Holdings against Kenindia Assurance.
This follows a directive by the High Court Judge Mary Kasango who turned down Nakumatts’ request of involving the regulator in the case as a defendant, saying the regulator should instead be called as a witness in the case.
“IRA should be called as a witness and not be dragged into this case as a party. It is because of that finding and more particularly because neither parties have a claim against IRA that chamber summons dated August 7, 2019 is dismissed. The costs shall be in the cause,” ruled Ms Kasango.
The troubled Nakumatt retail chain, which is in liquidation, had applied for an order for IRA to be included in the case as a defendant due to its wide-ranging role as the insurance industry regulator.
Nakumatt court-appointed administrator Peter Kahi maintained that that it was necessary to enjoin IRA to the proceedings to resolve the common questions of law and fact.
Kenindia wanted the court to declare that it did not owe Nakumatt Sh181.3 million.
The Nakumatt administrator had in his defence alleged that Kenindia had failed to settle claims where discharge vouchers had been executed and returned to them for settlement.
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