Justice Byram Ongaya said he should also get full for payment for the period he was away and the board should not interfere or sabotage his job.
Kenya Re will also pay the cost of the suit incurred by Mr Mwarania.
The judge noted that contrary to the claim by the board, the company has returned profit in the period Mr Mwarania has been at the helm
The Employment and Labour Relations Court has ordered the reinstatement of sacked Kenya Re #ticker:KNRE managing director Jadiah Mwarania.
Justice Byram Ongaya said he should also get full for payment for the period he was away and the board should not interfere or sabotage his job.
The judge noted that contrary to the claim by the board, the company has returned profit in the period Mr Mwarania has been at the helm
The court noted that Mr Mwarania's termination was unfair as he was not given opportunity to be heard, finding that the alleged loss of trust and confidence was unfounded.
“Thus the court holds that an employer who cannot establish gross misconduct or poor performance as at the time of termination cannot be said to fairly terminate an employee’s contract of service by simply invoking and alleging an empty assertion of loss of trust and confidence as was done in the present case,” said the judge.
The judge noted that the alternative remedy to reinstatement is award of compensation, which he said will be Sh22.3 million being his gross salary for one year.
But the judge said that awarding such substantial amount to a person who is ready and willing to go back to his job and work is oppressive and punitive since the firm is a State corporation.
He ordered his reinstatement with effect from March 12 without loss of benefits and directed the board to allow him resume his duties.
He further directed all his accrued salary to be cleared by September 1, and in default it will accrue interest from the date of judgment.
Kenya Re will also pay the cost of the suit incurred by Mr Mwarania.
Suspend decision
The judge also rejected a plea by Kenya Re's lawyer seeking to suspend the decision pending the appeal, directing the firm to make formal application.
Mr Mwarania was appointed to the helm of Kenya Re on April 11, 2011, but has served the corporation for more than 20 years, including as general manager for reinsurance operations.
His exit was announced in March through a Nairobi Securities Exchange (NSE) #ticker:NSE notice which indicated that Michael Mbeshi, the reinsurer’s property management general manager, would take over as acting managing director. The notice was signed by Mr Kemei.
Mr Mwarania moved to court alleging unfair termination and obtained orders restraining the board from filling the MD’s position pending determination of the suit.
But Kenya Re Board chairman David Kemei claimed Mr Mwarania lost his job over non-performance.
Mr Kemei claimed that the firm’s performance in the past three years had deteriorated, forcing the board to intervene.
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