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Kenya Re extends suspension of its CEO
Kenya Reinsurance (Kenya Re) Corporation Limited Group Managing Director Dr Hillary Wachinga addressing participants during the launch of Kenya Re’s International Life Reinsurance Operations into global markets at Reinsurance Plaza in Nairobi on February 26, 2025.
Kenya Reinsurance Corporation (Kenya Re) has extended the suspension of managing director Hillary Wachinga for a further 21 working days starting October 2, 2025.
Dr Wachinga was first suspended on September 3 for 21 working days following what the board termed as a “preliminary review of internal matters, which is ongoing.” This, even as sources linked his suspension to a talent review process he had initiated to streamline operations at the State-owned reinsurer.
A notice on Friday morning announced the extension, which will keep Dr Wachinga out of the office at least up to the end of the month.
“The board of directors of Kenya Reinsurance Corporation Limited wishes to inform the public that it has extended the suspension of the managing director, Dr Hillary Wachinga, for 21 working days from October 2, 2025,” read the notice in part.
The extended suspension means general manager for property and investments, Nicodemus Gekone, will continue to serve as the acting managing director for the intervening period.
Dr Wachinga, a part-time lecturer at Strathmore Business School, a golfer and poet, became Kenya Re managing director in March 2023, with the board hailing him as a “multiskilled strategic thinker” and a “flexible and adaptable corporate leader.”
Kenya Re share price shed 8.38 per cent of its value on the day Dr Wachinga was first suspended, closing the day as the top loser at Sh3.17.
The share price opened Friday trading at Sh3.18.
In the financial year ended December 2023, Dr Wachinga led Kenya Re in a 41.5 percent growth in net profit to Sh4.97 billion that saw shareholders’ dividend per share raised 50 percent to Sh0.30 amounting to Sh839.94 million plus bonus shares of one for each share already held.
Last year, the profit retreated by 10.6 percent to Sh4.44 billion mainly on foreign exchange losses, even as the reinsurance service result —reinsurance revenue less service expenses— grew 4.4 times to Sh2.95 billion. The dividend payout was maintained.
His continued suspension comes at a critical time for Kenya Re given that the September-November window is critical for renewing businesses which has a bearing on the next financial year’s performance.
Kenya Re is also awaiting a new rating from one of the key ratings agencies, raising the risk that the boardroom happenings might filter into the ratings.
A reinsurer’s credit rating is the opinion of an independent agency regarding the company's financial strength and ability to pay claims coming from insurers. A strong rating points to a reinsurer that can settle insurer’s claims without struggle.
