Diana Nduku Mumo has been appointed interim liquidator of Xplico Insurance, marking a significant step in the troubled insurer’s long-running financial woes.
- The ruling follows a petition by the Insurance Regulatory Authority, which sought liquidation after determining the company was unable to meet its statutory obligations.
- Xplico, which has been under statutory management since December 2023, has struggled with financial instability since 2015.
- The regulator had proposed three insolvency practitioners for the role but the court selected Mumo whose mandate now includes tracing and preserving the company’s assets while overseeing its operations during the liquidation process.
“From the evidence contained in the supporting affidavit, it is clear that the company cannot meet its financial obligations. A financial statement that was produced attests to that,” the court ruled.
The statutory manager’s report, submitted in November 2024, concluded that Xplico’s financial position was untenable—thus recommending liquidation.
“The Insurance Company is insolvent and its liquidity levels are not adequate to meet its statutory, financial, and legal obligations as required under the Insurance Act, thereby recommending liquidation,” the ruling added.
Despite multiple attempts to raise capital, the company remained insolvent until the regulator intervened, placing the insurer under statutory management and appointing the Policyholders Compensation Fund to assess whether it could be salvaged.
With the interim liquidator now in place, the court will proceed to hear the full liquidation petition.
