The Insurance Regulatory Authority Board has resolved to send its CEO Godfrey Kiptum on a long leave, pending investigation into the regulators financial dealings.
This is after the CEO spent close to seven years in office without proceeding for any leave, accumulating over 200 days leave days in the process.
While announcing the board decision, Insurance Regulatory Authority (IRA) chairman Mwambu Mabonga pointed to a possible cover-up of the regulators's under dealings, that might have led to a close monitoring by the CEO hence failure to take long annual leaves.
At the 59th Special Board Meeting held on Friday, the board resolved that Kiptum and any other officer with leave days, "to proceed on leave."
“It is essential for every public officer to go on leave unless there is something you are hiding. We as the board have resolved that senior manager, consumer protection Monica Thirima, is appointed in an acting capacity in the interim period,” said Mabonga.
Thirima will take over the entire mandate of the operations of the board as the authority waits for a new chief. However, Kiptum has a chance to return to the corner office if he is cleared within time, and if no substantive CEO would have been appointed.
“If there is no anormally, the commissioner will return to his office,” added Mabonga.
The regulator has been on the spotlight in recent days following a payment of Sh290 million in legal fees to a single law firm.
The final decision on the outcome of the investigations however lies with the board.
“With the large payment of legal fees to individual firms, we thought there was some laxity in some areas which we need to invite investigative agencies,” added Mabonga.
The Ethics and Anti-Corruption Commission and the Directorate of Criminal Investigations could be roped into the process, Mabonga hinted.
IRA said it is engaging its legal professionals over the matter and will be looking to tame instances where accounts of the authority are attached to law suits.
The board's resolutions coincided with an appointment of new board members by the National Treasury.
Cabinet Secretary Njuguna Ndung’u through a gazette notice dated May 18, 2023 had announced disbandment of the board.
This has put to question the eligibility of the outgoing board’s decision considering the CS had directed the new board changes to take effect from the May 19, 2023.
In the new board changes, the appointments of Annette Kithi, Muchiri Mithamo, Njenga Mwangi and Fauzia Arale were revoked.
“The Cabinet Secretary for the National Treasury and Economic Planning appoints Yasin Haji Hussein, Ambrose Makanga Ngari, Joel K. Chemiron (Prof.) and Immaculate Shamalla, to be members of the Insurance Regulatory Authority, for a period of three (3) years, with effect from the 19th May, 2023,” read the gazette notice.
