advertisement
Companies

Former Kenya Re director’s term in jail cut by half

 John Faustin Kinyua
Former Kenya Re-insurance finance director John Faustin Kinyua in court on June 13, 2019. FILE PHOTO | NMG 

The High Court has reduced the jail term slapped on former Kenya Reinsurance Corporation #ticker:KNRE finance director John Faustin Kinyua from three years to one year and four months.

Mr Kinyua, who was sentenced to jail in May for fraud after tricking taxpayers into buying a house in Embakasi’s Villa Franca Estate, was given the option of paying a fine of Sh1,393,792 for two counts of abuse of office and conferring a benefit.

The former finance boss had appealed against the sentence saying there was no proof that Kenya Re lost the house as alleged. According to him, the house was recovered and there was no loss on Kenya Re.

But Justice Mumbi Ngugi said there was no evidence that the house, which was transferred to former Heritage Insurance manager Charles Kinutha Gichane, had been recovered. She said the house should henceforth be returned to the corporation.

Mr Kinyua was in May this year found guilty of abuse of office and was ordered to pay a fine of Sh1 million, and in default serve one-year imprisonment.

advertisement

He was also ordered to pay a mandatory fine of Sh6.3 million in default to serve two years.

In the judgment, Justice Ngugi faulted chief magistrate Lawrence Mugambi for imposing a mandatory fine of Sh6.3 million. The Judge said the amount involved was Sh393,792 and the court should have ordered him to pay the amount. Justice Ngugi, therefore, substituted the Sh6.3 million with Sh393,792 and in default, Kinyua will serve four months in jail.

advertisement