The Court of Appeal has granted a reprieve to Old Mutual by lifting the insolvency proceedings filed against the insurance firm by businessman Joel Kibe.

The appellate court suspended an earlier High Court order that had directed Old Mutual to deposit KSh500 million from the intended sale of Old Mutual Tower in Upper Hill, Nairobi, into an escrow account.

The ruling marks a major relief for the insurer as it continues to contest the claims.

The court also declared that the company’s business is very crucial and may be affected by any form of negative publicity.

“In our view, the grounds pointed Old Mutual Tower in the Nairobi Upper Hill area above are not idle grounds but constitute arguable issues for the purposes of this kind of application,” the court stated.

The court added that the negativity of the company will scare away investors from ploughing back resources.

“We direct that pending the hearing and determination of the applicant’s intended appeal against the ruling of Mongare J, dated February 28, 2025, there be a stay of further proceedings therein,” said the court.

Kibe sued the company to persuade it to buy his Ksh 1.544 million shares with an interest of 18%.

The businessman also filed a petition to protect “oppressive conduct” from other shareholders. He also seeks other remedies and liquidation of the company under Sections 424 and 425 of the Insolvency Act.

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Insurance Firm Response to Case

In response from the insurance firm denied the allegations and slammed the tycoon’s authority to file the case.

Old Mutual said if the proceedings do not end immediately, investors will withdraw money from the company in a hurry, and they will not be discounted.

Additionally, further hearing of the petition will cost the company’s reputation, financial market, and financial standing.

Furthermore, the company said the movie was intended to activate panic and unjustified alarm in the market among its investors.

Presenting the petition is hostile to the survival and growth of the insurer.

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Company’s Financial Performance for The Previous Years

According to the company’s financial performance statement, the net profit has grown by 835 per cent from a loss of Ksh114 million in 2023 to Ksh838 million in 2024.

Therefore, the court should allow the firm to proceed with a positive trajectory for the benefit of its investors.

During the court hearing, the firm emphasized that Joel was free to sell his shares the way he bought them instead of seeking to sell his shares.

The tycoon said he invested a total of Ksh245.6 million in Old Mutual’s predecessor, UAP Holdings Ltd, opposed the case, stating that he and other minority shareholders were denied the opportunity to sell their shares.

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Old Mutual Towers structure in Upper Hill Nairobi for illustration purposes. PHOTO/Pixels