Kenya Re to appeal MD’s reinstatement

Kenya Re to appeal MD’s reinstatement

The board of Kenya Re has announced plans to appeal a decision by the employment and labor relations court to reinstate ousted managing director Jadiah Mwarania.

The move points to an intriguing power struggle at the reinsurance company.

Kenya Re chairman David Kemei in March announced Mr Mwarania’s sack but the MD has cited a case of conflict of interest with the government’s plan to replace the chairman.

At the time, Mr Kemei cited non performance as the reason for the sack.

Mr Mwarania reported to work on Monday.

“The court on 20th July 2018 made its decision to reinstate Mr Jadiah Mwarania as the managing director of the Kenya Reinsurance Corporation. The corporation has appealed against the court’s decision,” Kenya Re company secretary Charles Kariuki said in a notice.

The listed firm however said the standoff would not impact operations.

“We assure our customers and other stakeholders that the corporation will continue to render committed and dedicated service at all times,” he added.

In his ruling, Justice Byram Ongaya observed that Mr Mwarania’s efforts to comply with State House orders requiring him to initiate the replacement of board chairman and two other directors caused his tribulations.

The court ruled in the Kenya Re boss’ favor observing that the board did not follow due process in sacking him and ordered the firm to compensate him for time away.

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