Kenya Re boss sack tied to State House order, rules judge

Sacked Kenya Re managing director Jadiah Mwarania. FILE PHOTO | NMG 

By GALGALLO FAYO

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Summary

• Justice Byram Ongaya in a Friday ruling observed that Jadiah Mwarania had a clean record of performance until a letter by Public Service head Joseph Kinyua reached his office.
• The Judge ordered the reinstatement of Mr Mwarania and directed full payment for the period he was away and directed that the board should not interfere.
• He noted it would be unfair for Mr Mwarania to suffer loss of his "hard earned professional reputation and employment in circumstances that are linked to his actions in discharge of official duties".

Sacked Kenya Re managing director Jadiah Mwarania’s tribulations were caused by his efforts to comply with State House orders requiring him to initiate the replacement of board chairman David Kemei and two other directors, the Employment and Labour Relations Court has found.

Justice Byram Ongaya in a Friday ruling observed that Mr Mwarania, who worked for Kenya Re for 27 years, had a clean record of performance until a letter by Public Service head Joseph Kinyua reached his office.

Mr Kinyua, in a confidential letter dated June 8, 2017, directed Mr Mwarania to list Michael Monari, Hilda Muchunku and Julius Koros for a board members election during the company's annual general meeting. They were to replace Mr Kemei, a Mr Mukoma and Shakaba.

“In that consideration, the court returns as credible the claimant’s account that his acting upon that letter, as was his duty, was the proximate causation in the chain of the subsequent events culminating in his termination,” observed the judge.

The Judge ordered the reinstatement of Mr Mwarania and directed full payment for the period he was away and directed that the board should not interfere. He noted it would be unfair for Mr Mwarania to suffer loss of his "hard earned professional reputation and employment in circumstances that are linked to his actions in discharge of official duties".

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Mr Mwarania had recounted that for the 27 years, he received his first warning memo in June 2017, shortly after he complied with orders from Mr Kinyua.

But Mr Kemei denied knowledge of Mr Kinyua’s directive, holding that the firm’s performance in the past three years had deteriorated, forcing the board to intervene.

Contrary to the claim by the board, the firm has returned profits in the period Mr Mwarania has been at the helm, the judge ruled. The court ruled the MD's termination was unfair as he was not given an opportunity to be heard. The court ruled the alternative remedy is award of Sh22.3 million being his gross salary for one year.

The Judge said awarding such amount to a person willing to go back to his job is oppressive and punitive since the firm is a State corporation.