Blue Shield Insurance Company, once a prominent insurer established in 1982, faces liquidation following a High Court order that marks the end of its operations. Justice Alfred Mabeya’s ruling, delivered at the behest of the Insurance Regulatory Authority (IRA), cited the company’s insolvency and inability to meet financial obligations totaling Sh800 million in verified liabilities.
The court’s decision follows years of financial struggle for Blue Shield, which entered receivership from 2011 to 2014 under management aimed at revitalization, yet failed to recover. Godfrey Kiptum, IRA Commissioner, highlighted regulatory breaches and financial mismanagement, underscoring Blue Shield’s failure to pay into mandatory funds and accumulating substantial debts.
Despite resistance arguing for revival, including claims from stakeholders Ms. Beth Muigai and Ms. Jean Ngengi, the court sided with IRA assessments, endorsing liquidation to settle debts and distribute remaining assets among shareholders. The decision underscores the severity of Blue Shield’s financial collapse, affecting policyholders and stakeholders who now face the aftermath of the insurer’s demise.
