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Economy

Ex-Kenya Re boss stays in jail on failure to pay Sh15m fine

Former Kenya Reinsurance managing director Johnson Jackson Githaka
Former Kenya Reinsurance managing director Johnson Jackson Githaka. FILE PHOTO | NMG 

Former Kenya Reinsurance managing director Johnson Jackson Githaka has spent the past two weeks in prison after he failed to pay a Sh15.2 million fine for corruption.

Judiciary officials confirmed the status even as the hearing of his appeal remains pending.

Records of Mr Githika’s court files indicated that the former CEO had requested for typed proceedings of the trial and certified copy of the judgment by Senior Principal Magistrate Felix Kombo, that slapped him with a two-year jail term on failure to pay the fine.

The certified copy is a requirement before an appeal is made in a higher court.

Mr Kombo rejected Mr Githaka’s petition to suspend the sentence as he pursues an appeal at the High Court, forcing his stay in prison.

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Mr Kombo on April 10 convicted Mr Githaka for receiving a Sh7.26 million kickback, making his one of the few big-ticket convictions for corruption.

The court found that Mr Githaka fraudulently obtained the money paid by United Insurance Company to Kenya Re as an illegal commission for a multimillion- shilling property sale.

According to investigations by the Ethics and Anti-Corruption Commission, Mr Githaka’s corrupt dealings started when United Insurance was placed under statutory management by the Commissioner of Insurance on July 15, 2005.

He demanded a commission of three percent of the Sh242 million sale or Sh7.26 million for an office block belonging to United Insurance.

He used the kickback to buy a home in the high-end Loresho estate. Court records show that he has since sold the house, making it difficult for the State to seize the property.

The Commissioner of Insurance had appointed Kenya Re as the statutory manager of United Insurance.

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