Shocking revelations emerged about the leadership of Kenya Reinsurance Corporation Limited, a company that was once a respected institution in the reinsurance sector. The corporation, founded in 1970, has served many companies across different countries, but its reputation is now being tainted by allegations of mismanagement and corruption under the leadership of Managing Director Hillary Wachinga.
There are serious claims that Wachinga has engaged in irregular appointments, age discrimination, and questionable financial dealings. An email circulating among media outlets has detailed instances of improper staff transfers, targeting of competent employees, and failure to address critical operational challenges.
These actions have put the corporation at risk and raised concerns about governance and accountability.
One of the major issues is the irregular appointment of Wachinga himself. Reports indicate that his selection was rushed and went against a court order that had barred the board from making any appointments until the case concerning former Managing Director Jadiah Mwarania was concluded.
This disregard for the law raises questions about the board’s integrity and commitment to ethical governance.
It is also alleged that during the recruitment process, internal candidates were unfairly disqualified based on age. This is a clear violation of the Kenyan Constitution, which prohibits age discrimination in employment.
Senior employees like Michael Mbeshi, Jaqueline Njui, and Beth Nyaga were reportedly sidelined despite their qualifications.
Even more suspicious is the fact that Wachinga was not on the initial list of shortlisted candidates. His name was allegedly added later due to political influence, which ultimately secured him the top job.
Since taking over, Wachinga has been accused of misusing his authority to transfer staff in ways that appear to punish some employees while favoring others.
A notable case is that of Sylvia Karimi, a communications specialist who was moved to the Supply Chain department despite having no qualifications in procurement.
This is not only a violation of employment standards but also raises questions about whether the move was meant to facilitate corrupt dealings in the procurement department.
Other competent staff members, such as Emily Mbogo, Charity Nkonge, and Jenifer Sigei, were suddenly transferred to unrelated roles, a move suspected to be aimed at frustrating them into resigning.
Additionally, Brian Njoka, a former premises officer, was falsely accused of taking bribes, leading to his resignation after suffering depression from the allegations. These cases point to a pattern of victimization and abuse of power within Kenya Re.
Another troubling issue is Wachinga’s excessive travel, which contradicts government directives limiting the number of days a CEO can spend outside the country.
Reports indicate that he has been abroad for about 75% of the time each month, far exceeding the allowed 45 days per year. His frequent foreign trips have raised concerns about misuse of public funds, especially since some of these travels are unnecessary and could be handled by technical officers instead.
The situation at Kenya Re’s subsidiaries in Ivory Coast, Zambia, and Uganda further exposes the corporation’s financial mismanagement.
Despite these subsidiaries struggling financially, Wachinga and top officials continue to travel to these offices at a high cost to the corporation.
Each quarter, Kenya Re reportedly spends Ksh 8 million on per diems for these officials, even as some subsidiaries face potential collapse due to financial difficulties.
There are also claims that Wachinga has been engaging in nepotism, hiring staff based on personal connections rather than merit.
A notable example is a certain Ms. Maina, who was allegedly recruited into the Internal Audit department because she is related to him.
Such appointments go against the principles of fairness and transparency in public service.
Wachinga’s leadership style has also been described as abusive and authoritarian. He is said to openly insult staff and threaten them with dismissal, creating a hostile work environment.
Furthermore, he has been delaying the approval of claims, causing frustration among insurance brokers and companies waiting for payments. Instead of addressing these issues, he reportedly refers claims to risk and compliance teams, further slowing down service delivery.
A forensic audit was recently launched at Kenya Re, with PwC hired for Ksh 29 million. However, the audit appears to be more of a witch hunt than a genuine effort to improve governance.
Several staff members have had their laptops seized and analyzed, with the process seemingly aimed at intimidating employees rather than addressing real financial risks.Despite all these allegations, Wachinga continues to run Kenya Re as his personal enterprise.
Even when he is away on travel, he refuses to appoint an acting head, which leads to further delays in decision-making. His unwillingness to delegate responsibilities suggests a lack of trust in his team, which has negatively affected operations.
Another controversial move under Wachinga’s leadership is an alleged attempt to restructure Kenya Re without following due process.
Reports suggest that a budget was set aside to force employees into voluntary exit programs. This was done without proper consultation, raising suspicions about the motives behind the restructuring plan.
The situation is worsened by the fact that some key managerial positions remain vacant despite interview processes having been concluded.
For example, the position of Manager for the Life Department has not been filled, even after top candidates were shortlisted. Wachinga reportedly dismissed the shortlisted candidates as “non-responsive,” further fueling speculation that he is manipulating the hiring process.
Wachinga’s close ties to powerful political figures are believed to be shielding him from accountability. He has been linked to the embattled former deputy president, which may explain why complaints against him have not been acted upon by oversight bodies.
Reports indicate that cases have been forwarded to the Ethics and Anti-Corruption Commission (EACC), but no action has been taken, suggesting possible interference or bribery.
He has also allegedly bribed board members to secure their loyalty, ensuring that no serious decisions are made against him. This has left Kenya Re employees with little hope of justice, even as they continue to suffer under his leadership.
There are additional claims that Wachinga recently manipulated procurement processes to send senior staff for leadership training at Strathmore University, where it is believed he will receive a cut from the Ksh 40 million paid for the program.
Furthermore, there is an ongoing legal dispute involving a former employee, Lucy Kagwiria, who is suing Kenya Re for Ksh 67 million. She is reportedly very close to Wachinga and continues to receive special treatment despite her legal battle with the corporation.
This raises questions about possible collusion between the two to defraud Kenya Re.
