THE STANDARD By
Wainaina Wambu |
April 6th 2021 at 13:26:16 GMT +0300
Medical underwriter AAR Insurance has began the winding-up process of its Tanzania business citing financial difficulties.
This comes just after the Kenyan business recorded a 55 per cent drop in performance for the year ended December 2020, attributed to high claims due to Covid-19.
In a memo to staff, AAR Health Care Limited Acting CEO Andrew Rowell said the firm has been facing financial difficulties “for some time” now worsened by the failure of the NHIF model in Tanzania, the pandemic and a decline in traffic to their clinics.
“The Company’s parent, AAR Health Care Limited as a major creditor to the company, is no longer willing to support the financial requirements of the company and it is on this basis that the Board of Directors has resolved to initiate a creditor’s voluntary winding up process,” he said.
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