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Sacked Kenya Re boss in talks for Sh82 million compensation

suit Former Kenya Reinsurance CEO Jadiah Mwarania. File photo | nmg
suit Former Kenya Reinsurance CEO Jadiah Mwarania. File photo | nmg 

Former Kenya Reinsurance CEO Jadiah Mwarania is seeking Sh82 million compensation from the State corporation for wrongful termination of contract.

Mr Mwarania has entered into negotiations to settle his claim for salary, notice in lieu of termination, telephone allowance for 37 months and damages among others.

Appearing before Justice Byrum Ongaya Monday, Mr Mwarania through lawyer Judith Guserwa said the parties were negotiating a possible deal. He is alternatively seeking reinstatement to his former job.

The Judge gave them up to June 8 to reach a deal. Mr Mwarania rushed to court in March after his contract at Kenya Re was terminated.

The former CEO complained that his contract was renewed in April last year, for a period of five years, and it was due to expire on April 16, 2021.

He joined the State corporation in July 1990 and served in various capacities for 27 years, rising to the position of the managing director.

In an affidavit filed in court he said he believes the genesis of his sacking was linked to a directive by the Head of Public Service Joseph Kinyua and perceived issues with some members of the Board of Directors of Kenya Reinsurance. He claims that some board members who were due for retirement last year had hatched a plan to oust him.

Theboard allegedly accused him of perennial lapses in management of the corporation.

But Mr Mwarania said he responded to the queries on the alleged deficiencies on the corporate balance score sheet.

Shortly afterwards, he received another letter dated August 3, 2017 by the chairman of the board raising issues to do with staff policy. The board was, however, not satisfied with his responses and commissioned an assurance audit by PriceWaterHouse Coopers (PWC) touching on specific issues. In the petition, Mr Mwarania wants the court to declare that his termination was unfair, unjustified and illegal. 

According to the former MD he believes that his compliances with the directive of chief of staff and Head of Public Service was the genesis of the perceived issues with some members of the Board of Directors of Ke-Reinsuarance and in particular those who were due for retirement during an AGM dated 16 June 2017.

In its reponse filed in court by David Kimei –Kenya Reinsurance chairman, the firm said prior to the termination letter, various concerns on Mr Mwarania’s shortcomings had been raised and the same has not been adequately addressed by him. “The said concerns were not only based on internal observations but also on independent reports by external sources,” Mr Kimei said.

Mr Kimei further says that Mr Mwarania did not address the weaknesses leading to the downgrade of the corporation rating from B plus to B.

He says the downgrading meant that the corporation had moved from a reinsurer that has a good ability to meet its ongoing insurance obligations to one that is vulnerable.

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