NAIROBI, Kenya, Apr 10 – An Anti-Corruption Court on Tuesday fined former Kenya Reinsurance Corporation Managing Director Johnson Jackson Githaka Sh15.2 million or he faces a two-year jail term for fraud.
Githaka has been facing charges of embezzling Sh7.2 million, which was paid by United Insurance Corporation under Statutory Management of Kenya Reinsurance Corporation purporting that it was an agency fee, back in 2006.
The misappropriated amount was 3 per cent of Sh242 million, the total amount used to purchase United Insurance Towers by PTA Reinsurance Company.
The Ethics and Anti-Corruption Commission, through its probe established that there were no agents in the sale of United Insurance Towers as claimed by Githaka since the process was through competitive bidding.
According to the anti-graft body, Githaka used the said amount to purchase Nairobi Block 90/298 situated at Loresho registered in his name and that of his spouse.