The Kenya Re Board terminated the contract of its long serving managing director for what it termed as failing to deliver on set goals.
The Monday announcement that Jediah Mwarania had left the firm with immediate effect caught many by surprise as he had served for the past seven years as MD.
According to Kenya Re, the decision to terminate Mr Mwarania’s was based on the need to get fresh leadership to steer the reinsurer.
“The board reached its decision following a review of the corporation’s five year strategic plan and the milestones that the corporation is looking to achieve and in that view made the decision that Mr Mwarania had served his purpose and it’s time for the corporation to have a new mind at the helm,” Kenya Re corporate affairs manager Gladys Some-Mwangi said in a statement to newsrooms.
Mr Mwarania had worked at Kenya Re in different capacities for close to 20 years
Kenya Re board chairman David Kemei said Michael Mbeshi will step in as acting managing director as the board begins the recruitment process for a substantive replacement.
Mr Mbeshi is currently the property and administration general manager.
In February, American rating agency A.M. Best downgraded Kenya Re’s financial strength rating to B (Fair) from B+ (Good).
The agency cited concerns over Kenya Re’s enterprise risk management (ERM) in the face of expected business growth and increasingly sophisticated competition.
Kenya Re posted a Ksh 1.6 billion half year profit as gross written premiums went up to Ksh 7.5 billion.
The rating agency was also concerned by the reinsurer’s ability to grow capital resources at the same rate it grows its revenues.
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With the exit of Mr Mwarania, Kenya Re said it would be looking to a new MD to grow its business.
“The board came to the decision that the corporation needs leadership that will steer the corporation towards achieving its objectives,” Ms Mwangi said.
Kenya Re is 60% owned by the National Treasury and currently has a concession to take up 20% of reinsurance business from other insurance firms.
Story credit: citizentv.co.ke.
