KENYA-RE ASKED TO SETTLE TUSSLE WITH FORMER MD OUT OF COURT.

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former Managing Director Jadiah Mwarania.

BY SAM ALFAN.

Kenya Reinsurance and its former Managing Director Jadiah Mwarania can settle an employment tussle out of court.

Mwarania is fighting a decision by the board that terminated his contract.

The former MD has asked the court to make an order restraining Ke-Re from enforcing its letter dated March 12 terminating his contract.

He claims that the contract was renewed in 2016 for a period of 5 years and the insurance company has purported to terminate the contract in total violation of his constitutional rights.

Mwarania joined the company in 1990 as a managing trainee and was subsequently promoted through various managing positions and in 2012 was appointed as managing director until his termination.

“In June 2017, I received a directive from Joseph Kinyua –chief of staff and Head of Public Service regarding appointments to the Board and in compliance with the aforesaid directive appointments, I did undertake all that was required,” he said.

According to the former MD, he believes that his compliances with the directive of Head of Public Service Mr Kinyua 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 June 16 2017.

He continues to argue that on June 15 2017, the chairman of the Board of Directors raised a number of alleged deficiencies on the corporate Balance score card, management lapses /irregular conduct and was required to show cause why disciplinary action should not be taken against him.

He claims that he responded to all the allegations leveled against him.

Further, Mwarania says that he was invited to a disciplinary hearing scheduled for March 9 in which he sought for more time.

He reported on duty as usual by 8.00 am only to be informed that KE-Re Board convened a meeting without his knowledge and was later called and handed over a termination of employment contract without any notice, hearing or justification.

Mr David Kimei Kenya Reinsurance Chairman in a response says that the former MD prior to the termination letter, various concerns on his shortcomings had been raised and the same has not been adequately addressed by Mwarania.

‘The said concerns were not only based on internal observations but also on independent reports by external sources,” says Kimei.

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

He says that 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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