The loss-making Kenya Reinsurance (Kenya-Re) is at one of its worst years with wrangles over its leadership.
Sources intimate to Kenyanbulletin.com that the Re-insurer which reported a loss of Sh2.6 billion in 2019 and Sh1.1 billion in 2018 wants its boss Jadiah Mwarania to go.
American rating agency AM Best downgraded the long term issue credit rating (L-Term ICR) of the organisation to negative from the previous stable.
The board has always had issues with Mwarania’s management style which they consider corrupt since the reported loss of Sh1.1 billion in 2018.
In March 2018, Kenya Re board under then board chairman David Kimei terminated Mwarania contract that was to end on April 21 2021.
The matter moved Employment and Labour Relations Court where the court ruled that the matter be settled out of court. The CEO wanted the court to restrain Kenya-Re from enforcing its letter that sought to terminate his contract.
In the case, Mwarania had argued to be still in office up to April 21 2021.
In its response filed in court, Kenya-Re claims that prior to the termination, various concerns had been raised on the managing director’s shortcomings, and the same was not adequately addressed by Mwarania.
Mwarania had argued that his contract had been renewed in 2016 for a period of five years and the insurance company terminated the contract in total violation of his constitutional rights.
Despite the board chair David Kimei pushing on that stating that the grounds for his termination were also reached after getting independent reports from outside sources, Mwarania carried the day.
After he survived the purge, the CEO became more convinced that he needed to protect his stay till his contract expires in 2021.
Mwairania is said to have planted his henchmen in strategic positions. Two acting positions are being held by his tribesmen raising eyebrows. They are acting manager, business department Longin Nterere with Sylvi Karimi, acting manager corporate affairs department.
Sources say the CEO does not get on well with senior managers who he believes were lobbying to get his post when the contract was terminated.
Michael Mbeshi, general manager property and administration was being groomed by Kimei to take over as CEO.
Nicodemus Gekone (manager investments department) together with Martin Mati (manager research and development) are viewed suspiciously by the CEO. The duo are said to have been unhappy with his return as the top man at Kenya-Re John Rika (property) is also on the list.
Other managers are Beth Nyaga (operations), Jacqueline Njui (finance and investment), Arthur Levry (West Africa region), Suleiman Tembo (Zambia region), Tadeo Nsubuga (Uganda), Johnson Ireri (internal audit), George Njuguna (ICT), Gladys Musyoki (supply chain), Sammy Kaaria (risk), Sally Waigumo (human), Elizabeth Omondi (business), Alice Mbuyu (claims), Peter Angwenyi (office co-ordination), Teresia Kenya (life business), Jane Odipo (marketing) Philip Sanda (actuary), Judy Njuguna (archives), Consolata Kihara (safety), Samson Mudogo (chief account), Hilary Wachinga (credit), Mumut Ole Sialo (Zambia), and Lucy Kagwiria (West Africa).
Kenyanbulletin.com has information the CEO is grooming Njui, manager investments and finance to take over as CEO, further complicating matters at the ailing institution.