It is customary for retiring company chief executives to hold media interviews on their exits, letting in journalists into intimidating soundproof offices, mahogany desks, name plaques, and an enviable view of Nairobi from the top floor of the corner office.
Sleeves tucked back, easy laughter of relief, befuddled memories and a fairy tale are usually aspects of such functions.
Retired Britam boss Benson Wairegi had this chance but his team of trusted lieutenants were not so lucky.
Their exits were silent and hollow after their roles were purged and most of them were shown the door in one of the most brutal boardroom shakeups in Kenyan history.
Smart Business can reveal that a rift between local and international owners emerged after some owners tried to endorse one of the managers Gladys Karuri to take over from Dr Wairegi.
"She was seen as a safe pair of hands, an insider who could protect the vested interests of the establishment," a source who requested anonymity told Smart Business last week.
Foreign owners, on the other hand, including Swiss Re, AfricInvest and IFC with combined ownership of 51 per cent wanted a fresh impartial face, an outsider who could bring back the company to profitability.
Foreign owners
According to inside sources, the balance was tipped in favour of foreign owners who had raised issues about board strategies over the last couple of years, investment decisions, recruitment processes and conflict of interest queries to justify a radical gutting of top management.
Sources say wrangles exposed the ills that have been bedevilling the company over the years, cast board decisions on the spotlight and unearthed skeletons of vested interest that had haunted the company from within.
Britam did not respond to emailed queries by the time we went to press despite sending them days earlier.According to insiders, Britam’s problems started way back in 2013 when it bought Real Insurance for cash payment of Sh825 million and issuance of new shares worth Sh550 million. Its owners through Royal Ngao Holdings included former KenGen chief executive Eddy Njoroge, Sam Kamau, Joe Muchekehu and Ian Mukuria.Sources say it was not a good deal as the company was facing financial strain at the time of acquisition.According to the Insurance Regulatory Authority (IRA), as at December 2013, the firm carried underwriting provisions of Sh1.2 billion and debt of Sh580 million against Sh342 million assets invested in related companies, Sh703 million outstanding premiums and Sh621 million receivables.Two years […]
