Setback for Tycoon Fighting for Bigger Share of Prime City Building

Old Mutual Holdings has successfully obtained orders stopping proceedings in an insolvency case filed against the company in the High Court by businessman Joel Kibe.

The appellate court granted an interim stay order until 24th October 2025 when it shall deliver its ruling in the main application, effectively halting the continuation of the insolvency petition.

The Court of Appeal also stayed an earlier order by the High Court directing Old Mutual to deposit Ksh500 million from the proceeds of the sale of the Old Mutual Tower.

Mr. Kibe had moved to the High Court seeking protection for what he termed as “oppressive conduct” by the majority shareholders. He is seeking, among other remedies, liquidation of the company under section 424 and 425 of the Insolvency Act.

The application and allegations have been disputed by the majority shareholders and some minority shareholders who claim that Mr. Kibe’s suit is prejudicial to their interests and that of the company.

Old Mutual counters that Joel Kibe does not have legal standing to bring his suit and in any event all the decisions undertaken by the company have been in accordance with international best corporate governance practices, applicable Kenyan laws, and the company’s Articles of Association.

“That contrary to the allegations…… the Applicant (Old Mutual) confirms that it holds all its shareholders, including minority shareholders in the highest regard,” Old Mutual stated in documents filed in court.

“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 destabilise lawful corporate operations.”

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