A company associated with Deputy President William Ruto and his sister is being investigated.The Company,was given part of Sh58 billion Kenya Pipeline Company (KPC) insurance contract.
The detectives have asked for documents related to Tender Number KPC/PU/001-OT/16 for the cover of Line V, additional PS10 Tanks, and the Kisumu Oil Jetty which was awarded to CIC Insurance Company running from 1st June 2016 to 30th June 2019.
They have established that after the awarding the tender to CIC Insurance, Sedgwick Insurance Brokers, the brokerage firm twice requested Kenya Pipeline Company to allow African Merchant Assurance Company Limited (AMACO) Insurance take over 30 per cent of the US$504,035,726 (Sh50,403 272,600) cover despite Amaco not having participated in the bidding process of the initial tender number KPC/PU/001-OT/16.
In a letter dated September 9, 2106, Sedgwick requested for KPC to confirm if it was in order to co-insure 20 percent of the business awarded to CIC Insurance to Africa Merchant Assurance Company Limited (AMACO).
Five days later, on September 14, 2016, Sedgwick Kenya Insurance Brokers Ltd, through a letter to KPC referring to the September 9 memo yet again asked KPC to “confirm if it is in order to co-insure 30% of the of the business awarded to us, specifically the Industrial All Risk and Terrorism Sabotage Covers” to African Merchant Assurance Company Limited (AMACO).
Sedgwick Kenya Insurance Brokers Limited is a broker for KPC assets while the underwriters are CIC General Insurance Limited, being lead underwriter for Industrial All Risk and Terrorism policies holding 70 percent while African Merchant Assurance Company Limited (AMACO) holds 30 percent. AIG Kenya Insurance Co. Ltd holds the Public Liability Policy.
On August 14, 2018, CIC General Insurance Ltd received a US $ 37,339.14 (Sh3,733,900) premium for Sh37,123,185.40 as 70 percent of Industrial All Risk. Five days prior, on August 9, 2018 AMACO received US $16,002.19 (Sh1,600,200) as its 30 percent premium for the Industrial All Risk cover.
On 10th August 2018, CIC General Insurance Ltd received another US$4,722.06 (Sh472,200) premium as 70 percent of the Terrorism and Sabotage of the US$37,123,185. 40 risk covered.
Following similar pattern, on August 9, 2018 AMACO was paid US$2,023.74 (Sh202,300) as its 30 percent of the Terrorism and Sabotage risk. Then on August 14, 2018, CIC General Insurance Ltd was paid US$ 44, 655.80 (Sh4,465,500) as 70 percent premium of the US$352,825.008 (Sh35,282,500) as Line V and Kisumu Oil Jetty Terrorism and Sabotage premium.
For the same Line V and Sabotage cover, AMACO was paid US$19,138 (Sh1,913,800) as its 30 percent of the Terrorism and Sabotage risk cover.
According to KPC’s report on the current state of insurance cover, as at January 28, 2019, insurance cover for Line V, Kisumu Oil Jetty and Additional Tanks were on good faith for the period July 1, 2018 to June 30, 2019 due to unpaid premiums which variation was dissented by a member of the evaluation team.
According to the Kenyan Law,No insurer shall assume a risk in Kenya in respect of insurance business unless and until the premium payable thereon is received by him or is guaranteed to be paid by such a person in such a manner and within such a time as may be prescribed or unless and until a deposit of a prescribed amount is made in advance in the prescribed manner.
