Government-backed risk management giant Kenya Reinsurance Corporation (Kenya Re) is embroiled in allegations of nepotism, abuse of office, and financial mismanagement, with claims emerging that top executives have engaged in irregular staffing decisions, procurement malpractice, and questionable financial dealings.
Concerns have been raised over the leadership of the corporation, with accusations directed at senior officials for executing arbitrary staff transfers, favouring personal associates in hiring and promotions, and sidelining experienced employees perceived to be linked to the previous administration.
At the centre of the controversy is Managing Director Hillary Wachinga, who is accused of orchestrating a pattern of discriminatory practices, creating a toxic work environment, and influencing key financial decisions to benefit select individuals and external entities.
A confidential complaint submitted to the Commission on Administrative Justice (CAJ) has detailed a series of grievances against Wachinga, painting a picture of an institution where personal interests allegedly override professionalism and corporate governance.
According to insiders, staff members who question his decisions or resist his alleged influence have faced intimidation, demotions, or sudden transfers to less favourable positions.
The complaint, which has also been shared with the Ethics and Anti-Corruption Commission (EACC), Public Procurement Regulatory Authority (PPRA), and the Public Service Commission (PSC), accuses Wachinga of nepotism, tribalism, abuse of office, financial misconduct, and mismanagement.
Despite these reports being lodged with multiple oversight bodies, there has been no visible action taken against him, raising questions about whether political influence or institutional inertia is shielding him from scrutiny.
The allegations against Wachinga extend beyond internal governance issues, with claims that his leadership style and financial decisions have directly affected Kenya Re’s business operations, staff morale, and relationships with insurance companies.
This report examines the numerous claims raised against Wachinga, the alleged protection shielding him from accountability, and the impact on Kenya Re’s operations.
Nepotism and Tribalism
Wachinga has been accused of carrying out arbitrary transfers within the corporation, allegedly to punish employees perceived to have been aligned with the former MD.
Several key staff members, particularly from Kalenjin and Mount Kenya East communities, have allegedly been targeted for dismissal or frustration, including those in crucial departments such as procurement, corporate affairs, and international business.
The toxic work environment has reportedly forced several employees to resign, with some pursuing legal action against Kenya Re. Among those who have left include Brian Njoka, Martin Mati, Hellen Okanga, Beth Nyagah, George (ICT Manager), Rahab Kariuki, Hassan Omuroka, Vernon Lidava, Thomas Mumina, Miriam Ndule, Silue, and Ben Monda.
Wachinga has allegedly employed multiple relatives and close associates without following competitive hiring processes.
Some of the reported hires include:
- Josephine Maina (Audit Office), allegedly his brother’s daughter.
- Brian Kungu (Corporate Affairs), allegedly his relative.
- Laura Cheruto Mokotei (Risk Department), reportedly the daughter of Wesley Kibet, who allegedly helped him secure the MD position.
- A relative of former Deputy President Rigathi Gachagua.
- Steffy Wangu and Faith Mbaire, allegedly his girlfriends.
Internships at Kenya Re are allegedly been awarded in a biased manner, with priority given to young women linked to Wachinga or individuals from his ethnic community.
Financial Mismanagement and Irregular Expenditures
Wachinga is accused of failing to approve and settle insurance claims, pushing brokers and insurance companies to sever ties with Kenya Re.
He allegedly convinced the board to approve a forensic audit contract to PricewaterhouseCoopers (PwC) for Ksh 29 million without clear deliverables, which critics claim was an attempt to target employees he sought to remove.
The MD reportedly refuses to delegate authority while on international trips, instead relying on junior employees to act as informants on senior managers.
The Kenya Re board chairperson is said to be under Wachinga’s influence, allegedly acting on his instructions without consulting the full board.
This resulted in Wachinga reportedly scoring himself a perfect performance rating of 1 in the 2023 Balanced Scorecard (BSC), earning him a bonus of Ksh 24 million.
Retired staff members have allegedly been denied bonuses they were entitled to under company policy.
The corporation reportedly spent Ksh 100 million on a CEO summit in September 2024, which was not included in the budget.
Unaccounted-for donations and gifts from sponsors remain in storage, with some allegedly being distributed secretly to Wachinga’s associates.
In what is described as a conflict of interest, Wachinga allegedly colluded with Kenya Re’s marketing manager, Lucy Kagwiria, to file a lawsuit against the corporation demanding Ksh 67 million while still actively employed.
He is accused of cancelling tenders that do not serve his personal interests, instead awarding them to ‘Big 4’ audit firms where he previously worked.
A Ksh 40 million tender was allegedly awarded to Strathmore University, where Wachinga serves as a lecturer, without following procurement processes.
The training in question could have been provided by the Kenya School of Government at a lower cost.
Unfair Promotions and Demotions
Wachinga is accused of promoting individuals without a competitive process, allegedly prioritizing his friends and romantic partners.
Reported cases include:
- Jennifer Mutinda (Risk Manager)
- Warui Muiruri (Chief Accountant)
- James Mburu (Manager, Investments)
- King’ori Mwangi (Manager, Actuarial)
- Joel Irungu (Manager, International Business Unit)
- Benson Waibochi and Mbaabu (Assistant Managers)
- James Gathogo (Subsidiary Coordination)
- Mary Mwendwa (Corporate Affairs Manager)
Some staff members have been hit with demotions under unclear circumstances, including Gladys Some, Jennifer Sigei, Ann Kasimu, and Rahab Kariuki.
Questionable Payments and Perks
Brennan, a staff member, was transferred to Abidjan and recalled within six months, receiving Ksh 8 million in additional payments despite HR policies limiting such allowances.
Uganda’s regional manager, Tadeo Nsubuga, was approved to work from Nairobi for a month and reportedly received Ksh 11 million in per diem payments on top of his regular salary.
Josephine Maina, reportedly a relative of the MD, was sent on a two-week trip to Zambia while still an intern, an action said to be against company policy.
Stanley Kimuru, allegedly the son of Francis Ngotho Maina (a close ally of former DP Gachagua), is reportedly on Kenya Re’s payroll despite not performing any duties at the corporation.
Questionable Contracting and Procurement Decisions
Wachinga allegedly allowed a retired officer, Linus K’owiti, to continue working beyond the mandatory retirement age of 60 until public outcry forced an end to his contract.
Kenya Re reportedly pays Ksh 14 million per year to Hatari Security Firm, owned by a friend of Wachinga, for guarding a disputed Ngong Road plot.
However, sources claim the guards never access the property, as it is under the protection of Kenya Forest Service.
An Assistant Audit Manager was allegedly hired without following due process.
The appointment was reportedly halted only after the board intervened, but the individual had already worked for two months.
The removal of Susan Kandie from her position is suspected to be linked to her perceived closeness to the Treasury Principal Secretary.
Wachinga has been accused of verbally abusing managers in meetings, often humiliating them in front of junior staff.
He allegedly hired a personal bodyguard at the corporation’s expense, raising concerns about misuse of funds.
His frequent loan approvals and increasing debt burden at Kenya Re are seen as a financial risk, with some suspecting a scheme to siphon funds from the corporation before his contract ends.
Wachinga has allegedly interfered with procurement processes by:
- Directing tenders towards ‘Big 4’ audit firms.
- Influencing the award of property valuation tenders to a friend.
- Blocking tenders won by non-allied companies, such as a cleaning services contract that required intervention from the Public Procurement Oversight Authority (PPOA).
- Suppliers and service providers have reportedly delayed services to force Kenya Re to settle pending payments, leading to significant business losses.
Lack of Action from Oversight Bodies
Despite the gravity and breadth of allegations against Hillary Wachinga, there has been no indication of a formal investigation into his conduct.
Reports detailing nepotism, abuse of office, financial mismanagement, and procurement irregularities have been submitted to key oversight institutions, including the Ethics and Anti-Corruption Commission (EACC), the Commission on Administrative Justice (CAJ), the Public Procurement Regulatory Authority (PPRA), the Insurance Regulatory Authority (IRA), and the Public Service Commission (PSC) but none of these agencies have publicly acknowledged receipt of the complaints or initiated visible action against him.
The continued silence from these bodies has raised concerns about possible institutional inertia, political interference, or outright complicity in shielding Wachinga from scrutiny.
Kenya Re, as a state-backed corporation, operates within a regulatory framework that is supposed to ensure transparency and accountability but the lack of responsiveness from agencies mandated to enforce governance standards suggests either a failure of oversight or a deliberate effort to protect individuals within the corporation’s leadership.
Industry observers and governance experts argue that the absence of swift intervention not only emboldens impunity but also sets a dangerous precedent for other state corporations, where executives facing serious accusations can remain in office without consequences.
The apparent reluctance to act has also fuelled speculation that Wachinga enjoys high-level political backing, making it difficult for regulatory agencies to move against him without external pressure.
Meanwhile, employees who claim to have been victimized by his alleged actions have turned to the courts, seeking legal redress for what they describe as unfair dismissals, demotions, and workplace discrimination.
Some have accused Kenya Re’s management of using internal disciplinary processes to intimidate staff members who attempt to speak out, further deepening the climate of fear and dissatisfaction within the organization.
The impact of these unresolved issues extends beyond internal staff grievances.
Investors and stakeholders have begun questioning Kenya Re’s leadership, with growing concerns over how the ongoing turmoil could affect the corporation’s stability and long-term profitability.
If the allegations remain unaddressed, confidence in the reinsurer’s corporate governance could erode, potentially affecting its relationships with clients, business partners, and regulatory agencies both in Kenya and in the wider regional markets where it operates.
With complaints continuing to mount, the corporation risks not only reputational damage but also potential financial and operational setbacks if the current leadership crisis remains unaddressed.
Unless there is decisive intervention from relevant authorities, the ongoing controversy could further destabilize what was once regarded as one of the most formidable reinsurance institutions in Africa.
