Court Asks Kenya Re And Former MD To Settle Dispute Out Of Court

by Mahakamani News
Kenya Re Former Managing Director Jadiah Mwarania

A court has directed Kenya Reinsurance Corporation and its former Managing Director Jadiah Mwarania to settle their dispute out of court.

The ruling was delivered on Monday by Employment and Labour Relations Court judge Byrum Ongayo.

Mwarania is challenging the move by Kenya Re to end his contract.

He moved to court to bar his former employer from enforcing its March 12 letter which terminated his contract effective April 11, 2021.

The complainant says the corporation renewed his contract in 2016 for a period

of five years but ended it unexpectedly in total violation of his constitutional rights.

The former MD claims he joined Kenya Re in 1990 as a management trainee and held several management positions before becoming Managing Director in 2012, a position he held until he was sacked.

Mwarania says that prior to the receipt of his termination letter, he had been served with various unwarranted letters on

alleged shortcomings, which he responded to, and was therefore surprised

to be served with the notice of termination.

He also says that in June 2017, he received a directive from Joseph

Kinyua – the then Chief of Staff and Head of Public Service – regarding

appointments to the board.

The complainant believes that his compliance with Kinyua’s directive marked the

genesis of his perceived issues with some members of Kenya Re’s board of

directors.

He said these members were those who had been due for retirement during an annual general meeting on June 16, 2017.

Mwirania says that on June 15, the board chairman raised concerns about alleged deficiencies on the corporate balance score card, management lapses and irregular conduct and that he was required to give reasons for no disciplinary action against him

He claims that he reported for duty by 8 am, as usual, only to be informed that the board convened a meeting without his knowledge and that he was later called and handed the termination letter.

The former Managing Director says there was no notice, hearing or justification for the move.

In his affidavit, however, board chairman David Kemei says that prior to Mwarania’s termination, they noted his shortcomings that he did not address them adequately.

This caused the organisation to drop from a B+ to B rating, he said, noting this meant Kenya Re became vulnerable and was no longer a reinsurer capable of meeting its obligations.

The case will be mentioned on Friday.


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