Court Halts Insolvency Case Against Old Mutual in Major Win for the Firm

The Court of Appeal has handed Old Mutual Holdings a reprieve by suspending the continuation of an insolvency case filed against the company by businessman Joel Kibe, pending the determination of a main application scheduled for ruling on 24 October 2025.

In a significant development, the appellate court issued interim orders staying High Court proceedings in the case, which had threatened the financial and operational stability of the multinational insurer.

The court also stayed an earlier High Court directive requiring Old Mutual to deposit Kshs. 500 million from the proceeds of its recent sale of the iconic Old Mutual Tower.Mr. Kibe had filed the insolvency petition citing what he described as “oppressive conduct” by majority shareholders, and sought the liquidation of the firm under sections 424 and 425 of Kenya’s Insolvency Act.

His petition has drawn sharp opposition from both the majority and some minority shareholders, who argue that the case is not only without merit but also detrimental to the company’s interests.

Old Mutual, in response, has questioned Mr. Kibe’s legal standing to file the petition, asserting that all decisions made by the company were in compliance with its Articles of Association, Kenyan corporate laws, and international governance standards.

In court filings, the company stated, “Contrary to the allegations, the Applicant confirms that it holds all its shareholders, including minority shareholders, in the highest regard.However, actions undertaken in accordance with the Company’s Articles of Association and approved by the requisite majority cannot be set aside at the instance of a single dissatisfied person. To do so would undermine established principles of corporate governance and destabilize lawful corporate operations.”

The Court of Appeal’s decision marks a pause in what could have been a far-reaching case with implications for corporate governance and shareholder rights in Kenya