Kenya Reinsurance Corporation (Kenya Re), a government-backed entity, is currently facing serious allegations of corruption, abuse of office, and financial mismanagement.
A confidential complaint submitted to the Commission on Administrative Justice (CAJ) has brought to light claims of irregular staffing decisions, questionable procurement practices, and dubious financial dealings involving top executives.
The complaint specifically targets Managing Director Hillary Wachinga, accusing him of orchestrating a pattern of discriminatory practices, fostering a hostile work environment, and manipulating financial decisions for personal gain. Allegations include arbitrary staff transfers, favouritism in hiring and promotions, and the sidelining of experienced employees perceived to be loyal to the previous administration.
According to insiders, staff members who have questioned Wachinga’s decisions or resisted his alleged influence have faced intimidation, demotions, or transfers to less desirable 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), details accusations of nepotism, tribalism, abuse of office, financial misconduct, and mismanagement against Wachinga.
Despite the submission of these reports to multiple oversight bodies, no visible action has been taken against Wachinga, raising concerns about potential political influence or institutional inertia protecting him from scrutiny.
Allegations of Nepotism and Tribalism
Wachinga is accused of implementing arbitrary transfers, allegedly targeting employees from specific communities, including Kalenjin and Mount Kenya East, particularly those in crucial departments like procurement, corporate affairs, and international business. This has reportedly created a toxic work environment, leading to the resignation of several employees who are now pursuing legal action against Kenya Re.
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Furthermore, Wachinga is alleged to have employed relatives and close associates without adhering to competitive hiring processes. These reported hires include Josephine Maina (Audit Office), Brian Kungu (Corporate Affairs), Laura Cheruto Mokotei (Risk Department), and relatives of prominent political figures. Internships at Kenya Re are also alleged to be awarded in a biased manner, favouring young women linked to Wachinga or individuals from his ethnic community.
Financial Mismanagement and Irregular Expenditures
The complaint also raises serious concerns about financial mismanagement and irregular expenditures under Wachinga’s leadership. He is accused of failing to approve and settle insurance claims, leading to strained relationships with brokers and insurance companies. Additionally, Wachinga allegedly influenced the board to approve a Ksh 29 million forensic audit contract to PricewaterhouseCoopers (PwC) without clear deliverables, which critics suggest was an attempt to target employees he sought to remove.
Other allegations include Wachinga’s refusal to delegate authority while on international trips, reliance on junior employees for information on senior managers, and the board chairperson allegedly acting on his instructions without consulting the full board. This reportedly resulted in Wachinga awarding himself a perfect performance rating and a bonus of Ksh 24 million.
The corporation is also reported to have spent Ksh 100 million on a CEO summit not included in the budget, and donations and gifts from sponsors remain unaccounted for, with some allegedly being distributed secretly to Wachinga’s associates. In a potential conflict of interest, Wachinga is accused of colluding with Kenya Re’s marketing manager to file a lawsuit against the corporation for Ksh 67 million while still employed.
Further accusations involve Wachinga cancelling tenders that do not serve his personal interests and awarding them to ‘Big 4’ audit firms where he previously worked. A Ksh 40 million tender was allegedly awarded to Strathmore University, where Wachinga is a lecturer, without following proper procurement processes.
Unfair Promotions and Demotions
Wachinga is also accused of promoting individuals without competitive processes, prioritizing friends and romantic partners. Notable promotions include Jennifer Mutinda (Risk Manager), Warui Muiruri (Chief Accountant), and several others. Conversely, some staff members have faced demotions under unclear circumstances.
Questionable Payments and Perks
The complaint highlights several instances of questionable payments and perks. A staff member transferred to Abidjan and recalled within six months allegedly received Ksh 8 million in additional payments, while Uganda’s regional manager was approved to work from Nairobi and reportedly received Ksh 11 million in per diem payments. Additionally, an intern, reportedly a relative of the MD, was sent on a two-week trip to Zambia against company policy.
Questionable Contracting and Procurement Decisions
Wachinga is accused of allowing a retired officer to continue working beyond the mandatory retirement age until public outcry forced the termination of his contract. Kenya Re also reportedly pays Ksh 14 million annually to a security firm owned by a friend of Wachinga for guarding a disputed property that is under the protection of the Kenya Forest Service.
Further allegations include the irregular hiring of an Assistant Audit Manager and the removal of Susan Kandie from her position, suspected to be linked to her perceived closeness to the Treasury Principal Secretary. Wachinga is also accused of verbally abusing managers and hiring a personal bodyguard at the corporation’s expense.
His frequent loan approvals and increasing debt burden at Kenya Re are viewed as a financial risk, with suspicions of a scheme to siphon funds from the corporation before his contract ends. Wachinga is also accused of interfering with procurement processes, directing tenders towards ‘Big 4’ audit firms, influencing property valuation tender awards, and blocking tenders won by non-allied companies. This has reportedly led to suppliers and service providers delaying services due to pending payments, causing significant business losses.
Lack of Action from Oversight Bodies
Despite the serious and extensive nature of the allegations against Hillary Wachinga, there has been no indication of a formal investigation by the relevant oversight bodies. The EACC, CAJ, PPRA, IRA, and PSC have not publicly acknowledged receiving the complaints or initiated any visible action against him.
This lack of response has raised concerns about potential institutional inertia, political interference, or complicity in protecting Wachinga from scrutiny. Industry observers and governance experts argue that the absence of swift intervention not only encourages impunity but also sets a dangerous precedent for other state corporations.
The apparent reluctance to act has also led to speculation about Wachinga’s potential high-level political backing. Meanwhile, affected employees have resorted to legal action, citing unfair dismissals, demotions, and workplace discrimination.
The ongoing issues are raising concerns among investors and stakeholders about the potential impact on Kenya Re’s stability and long-term profitability. If the allegations remain unaddressed, it could erode confidence in the reinsurer’s corporate governance and affect its relationships with clients, business partners, and regulatory agencies.
Unless there is decisive intervention from relevant authorities, the controversy risks further destabilizing Kenya Re, a once-formidable institution in the African reinsurance market.
