Former Sanlam CEO Kibati earned Sh54 million in 2017

Mr Mugo Kibati. FILE PHOTO | NMG 

By VICTOR JUMA

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Summary

• Mugo Kibati's pay consisted of a Sh44.6 million salary, equivalent to Sh3.7 million per month, a bonus of Sh3.4 million and pension benefits of Sh5.5 million.
• He earned a pension of Sh5.1 million and salary of Sh40.4 million or Sh3.3 million per month the previous year when he was not paid a bonus.

Sanlam paid its former chief executive, Mugo Kibati, a total of Sh53.5 million in the year ended December, the insurer disclosed in its latest annual report.

Mr Kibati, who left the Nairobi Securities Exchange-listed firm in March, was paid Sh45.5 million in the previous year.

His compensation in the review period consisted of a Sh44.6 million salary, equivalent to Sh3.7 million per month, a bonus of Sh3.4 million and pension benefits of Sh5.5 million.

He earned a pension of Sh5.1 million and salary of Sh40.4 million or Sh3.3 million per month the previous year when he was not paid a bonus.

“Staff are entitled to a bonus, which is based on preset performance parameters on an annual basis. The full cost of the bonus is expensed in the year in which it is incurred,” Sanlam said in the report.

Mr Kibati, who has held multiple executive roles in government and the private sector, led the insurer for three years.

The insurer hired him on February 17, 2015 to replace Tom Gitogo who resigned in September 2014 and was later appointed chief executive of rival CIC Insurance Group

.

READ: Sanlam raises its stake in Gateway to Sh1bn

Mr Kibati’s term was marked by increased competition in Sanlam’s mainstay life business where it used to be one of the biggest players.

Mr Kibati also sought to grow the company’s market share in general insurance, a segment Sanlam exited in 2011 only to re-enter by acquiring Gateway Insurance in 2015.

The acquisition has not paid back as expected, with the insurer writing off the bulk of the premium it paid in the buyout.

“The board remains grateful to Mr Kibati for his dedicated service to Sanlam Kenya, having assumed the group leadership role from February 2015,” Sanlam said.

“During the period, Mr Kibati provided strategic leadership, successfully overseeing … smooth integration of the group’s recently acquired general insurance business and the construction to completion of Sanlam Tower, among other key growth plans that will help position the group as a major player in our industry.”