The chief executive officer of Africa Trade Insurance Agency (ATI), George Oduori Otieno, has won round one of a legal tussle to block his exit from the company after a court ruled that the pan-African firm cannot claim immunity against prosecution in Kenya.
ATI, the continent’s largest insurance agency, had raised objection to the suit on grounds that the Employment and Labour Relations Court (ELRC) lacked jurisdiction to determine issues raised by Mr Otieno since it was given immunity during its inception.
The chief executive officer of Africa Trade Insurance Agency (ATI), George Oduori Otieno, has won round one of a legal tussle to block his exit from the company after a court ruled that the pan-African firm cannot claim immunity against prosecution in Kenya.
ATI, the continent’s largest insurance agency, had raised objection to the suit on grounds that the Employment and Labour Relations Court (ELRC) lacked jurisdiction to determine issues raised by Mr Otieno since it was given immunity during its inception.
But in her ruling, Justice Maureeen Onyango said Kenyan courts can adjudicate the case since the firm, which is Africa's only multilateral investment and credit insurer, is subject to the Constitution and laws of Kenya. She allowed the petition filed by lawyer Titus Koceyo for the CEO to proceed to full hearing saying “Article 16 (1) of the ATI is not framed to confer absolute immunity against litigation.”
Mr Koceyo is urging the court to declare Article 16 (1)(b) of the Treaty establishing ATI dated May 18, 2001, unconstitutional, null and void.
“Since one of the prayers of the petitioner is have Article 16 (1)(b) declared unconstitutional, the court must allow the petition to be argued before a determination is made,” ruled Justice Onyango.
The case was filed by Mr Otieno on May 20, 2019 after ATI moved to terminate his contract which he says was to expire in 2021.
ATI member states varied the contractual terms of a CEO from five years to three years. Mr Otieno was serving his second term when changes were introduced.
Justice Onyango in May stopped ATI from firing him pending hearing and determination of the suit.
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