https://new.kenyalaw.org/akn/ke/judgment/kehc/2026/6898

Muriithi v Ikana & 2 others (Insolvency Petition IP E015 of 2024) [2026] KEHC 6898 (KLR) (Commercial and Tax) (14 May 2026) (Ruling) Neutral citation: [2026] KEHC 6898 (KLR) Republic of Kenya In the High Court at Nairobi (Milimani Commercial Courts) Commercial and Tax Insolvency Petition IP E015 of 2024 F Gikonyo, J May 14, 2026 IN THE MATTER OF CENTSAVVY CREDIT LIMITED IN THE MATTER OF THE INSOLVENCY ACT Between Alice Njeri Muriithi Petitioner and Fredrick Lusuli Ikana 1st Respondent Dorcas Muthoni Njoora 2nd Respondent Michael Wesonga 3rd Respondent Ruling 1.The petitioner/ applicant filed the notice of motion dated 19.3.2025 under section 504 of the Insolvency Act and Rule 10 of the Insolvency Regulations. 2.The applicant primarily seeks orders to summon the subject company’s director’s, the respondents herein to be examined as to their conduct in relation to the management of the company. 3.The applicant also seeks that after the examination, the court finds the respondents to repay, restore and account for the money or property and contribute the company’s assets as compensation for misfeasance, breach of fiduciary or other duties. 4.The application is supported by the affidavit sworn by the applicant on 19.3.2025. 5.The application is unopposed, despite the respondents filing a notice of appointment dated 14.4.2025. 6.The main grounds are that the applicant commenced the liquidation proceedings against the company on account of its inability to settle a debt of Kshs. 2,291,250/-. That despite the petition being mentioned severally in court and email correspondence, the respondents continued to ignore them. 7.The applicant asserted that the 1st respondent made several personal commitments to pay the debt but did not honour them. She faulted the respondents for seeking to remove the 2nd respondent as a shareholder and director during the pendency of the insolvency proceedings to circumvent and insulate her from the consequences under section 504. Analysis and Determination 8.Section 504 (2) of the Insolvency Act provides that: -“(2)If, during the course of the liquidation of a company, it appears that a person to whom this section applies has or may have—(a)misapplied or retained, or become accountable for, money or property of the company; or(b)committed misfeasance or a breach of any fiduciary or other duty in relation to the company, the Official Receiver, the liquidator of the company or a creditor or contributory of the company may make an application to the Court to conduct an examination under subsection (6). 9.The evidence produced by the applicant comprises various correspondences between her advocates and the company, Whatsapp messages from the 1st respondent promising to clear the debt, a copy of the company official search (CR12) showing the alleged changes in directorship during the pendency of the insolvency proceedings. 10.In view of the evidence, the court is satisfied that the applicant has prima facie demonstrated that there are grounds that warrant the examination of the company’s directors and officers. Conclusion 11.In the upshot, the court allows the application dated 19.3.2025 in terms of prayer 2. DATED, SIGNED AND DELIVERED AT NAIROBI THROUGH MICROSOFT TEAMS ONLINE APPLICATION THIS 14TH DAY OF MAY, 2026-----------------------F. GIKONYO MJUDGEIn the presence of: -Ms. Mungai for Barak for PetitionerNjonjo for Respondent absentCA-Ivan/Aggrey