Matatu association breathes new life into Invesco Assurance

By James Anyanzwa

The collapsed motor vehicle underwriter Invesco Assurance Company has been revived.

The Matatu Owners Association (MOA) have bought an 80 per cent controlling stake in the company, pumped in an additional Sh200 million mandatory capital, and promised to pay off all outstanding debts, amounting to Sh600 million.

The Insurance Regulatory Authority (IRA) said the new investors have so far put in some of the money in the company.

"They have said they are going to liquidate the debts. It is on that basis their request was considered," said Sammy Makove, the authority’s chief executive.

The IRA placed Invesco under Statutory management in February 2008, after failing to compensate its clients, and pay debts.

Makove said the statutory managers has reviewed the firm’s financial status, and recommended that the firm could be revived under a restructured framework.

Accepted recommendation

"On consideration of the proposal and details of the restructuring as provided by the statutory managers, the authority’s board of directors accepted the recommendation that the company be revived as proposed," Makove told reporters at the authority’s offices, in Nairobi, yesterday.

Makove said the re-opened company will be expected to comply with all provisions of the Insurance Act.

The MOA, operating as Public Transport Investment Company, hopes to tame a myriad of bogus and fraudulent claims that have bedeviled PSV underwriters. In the last 10 years, seven insurance companies in Kenya have collapsed, due to fraudulent claims and mismanagement. These include Stallion, United, Lakestar, Liberty, Access, Invesco and Standard Assurance Companies.