Kenya-Re loses contempt of court appeal

The reinsurance company was ordered to reinstate sacked managing director Eunice Mbogo but defied

In Summary

• Mbogo complained to the High Court that the corporation appointed an acting Managing Director despite a court order halting that.

• The firm appealed on grounds that by the time the order was served, Mbogo’s term had ended.

Kenya-Re MD Jadiah Mwaraniah. /Moses Mwangi
Kenya-Re MD Jadiah Mwaraniah. /Moses Mwangi

Kenya-Re will have to pay a shilling one million fine for defying court orders in a case depicting it against a former employee, the court of appeal has ruled. 

The reinsurance company was ordered to reinstate sacked managing director Eunice Mbogo but defied leading to contempt of court proceedings in 2010.

Mbogo complained to the High Court that the corporation appointed an acting Managing Director despite a court order halting that.

 
 

She had won the first round in the battle with Kenya-Re but the firm filed a case challenging the order by Lady Justice Joyce Khaminwa overturning Kenya-Re Board’s decision to fire her.

The firm appealed on grounds that by the time the order was served, Mbogo’s term had ended.

They also argued that the matter ought to have been heard in the then Industrial Court and not the High Court.

The firm said the  Judge erred in reaching the conclusion that contempt had been proved when there was nothing to show that the appellant had acted in a manner calculated to embarrass or obstruct the administration of justice.

But appellate judges William Ouko, Katembo Kairu and K. Murgor ruled that Kenya-Re was indeed served with the orders to maintain the status quo which it ignored.

“The learned Judge properly directed herself to the questions before her and arrived at the correct decision. The appeal is bereft of any merit. It is accordingly dismissed with costs to the respondent,” the judges ruled.