Two former Kenya Re bosses jailed over fraud
Two former top managers at the Kenya Reinsurance Corporation have been sentenced to three years in prison over abuse of office and fraudulent transfer of a house belonging to the company.
Former Kenya Reinsurance Corporation Financial Controller Faustin Kinyua and ex-manager Charles Gichane were, however, given the option of paying a fine of Ksh.7.3 million each failure to which they will be sent to prison.
Kinyua was found guilty of abuse of office for allegedly allocating and transferring a house belonging to the corporation, situated in Villa Franca Estate in Nairobi to Gichane, who was accused of acquiring the property fraudulently.
“From the evidence of this case, it is clear that the two accused persons took time to plan and execute against Kenya Re Insurance, they succeeded in their mission,” Magistrate Lawrence Mugambi ruled.
The magistrate further ordered that the house at Villa Franca Estate be reverted to Kenya Reinsurance. The house was reported to be worth Ksh.3.1 million in 2003.
In 2014, the two were charged afresh after the High Court ordered that they be tried afresh after finding their 2008 prosecution was defective.
They are said to have committed the offence on diverse dates between August 19–27, 2003.
In their mitigation, Kinyua told the court he has health issues which have seen him in and out of the hospital, adding that he has a daughter studying in the UK and her education might suffer should he be incarcerated.
Gichane asked the court to consider his plea arguing that he has an elderly man of 68 years of age and has five grandchildren under his care.
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