Sacked Kenya Re #ticker:KNRE managing director Jadiah Mwarania on Monday expressed shock at his sudden dismissal, claiming he did not know the reasons why he was pushed out of the State corporation’s corner office.
Mr Mwarania, who was appointed MD on April 2011, in an interview said he was “shocked” at his sacking, adding that he had not received any explanation from the board on the matter.
He says he learned of his sacking moments after reporting to work on Monday when Kenya Re board chairman David Kemei asked him to leave, drawing the curtains on his over two decades stay at the reinsurance agency.
The board in a statement said the CEO was shown the door to pave the way for fresh blood to steer the business.
“I reported to work as usual and was told to leave by the chairman of the board,” Mr Mwarania said in an interview moments after his departure was announced by the Kenya Re through the Nairobi Securities Exchange (NSE).
“I am shocked. I have not been formally served with a termination letter or told why I have been asked to leave.”
Mr Kemei, through the early morning NSE notice, stated that the reinsurer had “separated” with Mr Mwarania, without offering more details for this unexpected sacking.
He also announced that Michael Mbeshi, the reinsurer’s property management general manager, has been appointed as the acting boss with immediate effect.
A press statement issued later in the day offered more explanation, noting that the change of guard would help “steer the corporation toward achieving its objectives” as set out in Kenya Re’s 2018 – 2020 strategic plan.
“The board reached its decision following a review of the corporation’s five-year strategic plan and milestones it is looking to achieve and in that view made the decision that Mr Mwarania had served his purpose,” said Mr Kemei.
The reinsurer offers covers to over 150 firms across the region. In the six months to June 2017, it reported a net profit of Sh1.6 billion compared to Sh1.56 billion the previous year.
The firm, which is yet to announce its full-year earnings, attributed the marginal growth in profitability to stiff competition in the sector and undercutting in the reinsurance market.