Economy

Kenya-Re locked in suits over Sh1.6 billion assets

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Auditor General Nancy Gathungu. PHOTO | LUCY WANJIRU | NMG

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Summary

  • An annual report by Kenya Re, shows that the corporation is balling to reclaim four investment properties located in Nairobi’s Ngong Road, Kiambu Road, Jomo Kenyatta International Airport (JKIA) and Shanzu in Mombasa.
  • Kenya Re invested Sh350 million in the Ngong Road property, Kiambu Road (Sh563 million), Shanzu (Sh23 million) and JKIA (Sh700 million) bringing the total investments to Sh1.63 billion.
  • The Ngong Road property measures approximately 59.87 hectares and is subject of dispute between the corporation and Kenya Forest Service (KFS).

The Kenya Re-Insurance Corporation (Kenya Re) is locked in court battles over ownership of prime properties worth Sh1.6 billion, a report shows.

An annual report by Kenya Re, shows that the corporation is balling to reclaim four investment properties located in Nairobi’s Ngong Road, Kiambu Road, Jomo Kenyatta International Airport (JKIA) and Shanzu in Mombasa.

Kenya Re invested Sh350 million in the Ngong Road property, Kiambu Road (Sh563 million), Shanzu (Sh23 million) and JKIA (Sh700 million) bringing the total investments to Sh1.63 billion.

The Ngong Road property measures approximately 59.87 hectares and is subject of dispute between the corporation and Kenya Forest Service (KFS).

The dispute is before the National Land Commission (NLC), Auditor-General General Nancy Gathungu said in the audit report for Kenya Re books of account for the year to June 2019 tabled in Parliament.

“The corporation may not be realising the benefits that accrues from the ownership of the land and management may not be in a position to make long -term plans,” Ms Gathungu said.

The dispute over its Kiambu Road land measuring 99.5813 hectares involves one of the directors of the vendor that sold the land. The case is in court.

In the 17.3 hactares Shanzu property, Kenya Re is locked in a court battle with Kenya Re and the Kenya Prisons Department.

Kenya Airports Authority has restricted Kenya Re’s access to the property within the precints of the JKIA, citing security reasons.

The property disputes are despite President Uhuru Kenyatta issuing a directive in July last year that State agencies withdraw all legal suits filed against each other.