Nabwire & another v Directline Assurance Company Limited (Civil Case E420 of 2024) [2026] KEMC 76 (KLR) (20 February 2026) (Judgment)

Facts

The Plaintiffs seek a declaration that the Defendant is liable to satisfy a judgment in the amount of Kshs. 4,261,932.11, including interest and costs, up to the statutory limit of Kshs. 3,000,000.00. The Defendant was the insurer of motor vehicle KCH 587W, and the primary suit found Joel Ndunda Kimilu, the Defendant's insured, 100% liable.

Issues

1. Whether the Defendant was the insurer of motor vehicle KCH 587W
2. Whether statutory notice was duly served
3. Whether the Defendant is bound to satisfy the judgment
4. The extent of liability in light of the statutory cap

Reasoning

The Defendant was the insurer of the vehicle and the policyholder was found liable in the primary suit. The Defendant did not seek a declaration to avoid the policy or set aside the judgment within the statutory period, thus being barred from raising those defenses. The statutory cap of Kshs. 3,000,000.00 applies.

Outcome

The Defendant is ordered to pay Kshs. 3,000,000.00 with interest from 11th September 2024, and the Plaintiffs may pursue the balance from the insured.

Authorities cited