Court allows Mbogo to start contempt proceedings against Kenya Re

By JUDY OGUTU

Ms Eunice Mbogo has been allowed to commence contempt proceedings against the Kenya Reinsurance Corporation Limited.

High Court Judge, Lady Justice Joyce Khaminwa granted the orders Thursday following an application filed by her advocate, Mr Harrison Kinyanjui.

"It is clear the first respondent (Kenya Re) is in breach of court orders. I grant leave sought," the judge ruled.

She also directed Mbogo to file the contempt proceedings within 14 days. On April 12, the High Court ruled that she continues serving as the MD pending hearing and determination of a case she has filed in court.

Mbogo is accusing Kenya Re of disobeying the orders and also blocking her from accessing her office. She went to court on Monday under a certificate of urgency saying Kenya Re had "failed or forgotten" to respond to a letter she wrote last October requesting for the renewal of her contract.

Decision stopped

Consequently, High Court Judge, Lady Justice Joyce Khaminwa agreed with her and temporarily stopped Kenya Re, Finance PS and Finance Minister from making any decision "adverse to her rights under the agreement with Kenya Re as stipulated in the letter of appointment of April 12, 2007."

This means the status quo as at April 7, 2010 will be maintained until the suit is heard and determined.

Further, she was allowed to apply for orders prohibiting Kenya Re, Finance Minister and PS and the Attorney General from effecting and terminating, suspending or withholding her salary and benefits as long as she remains in the employment of Kenya Re.

In addition, Mbogo was allowed to apply for orders compelling Kenya Re to renew her contract of service with it as envisaged under the April 12, 2007 agreement.

In alternative, Justice Khaminwa allowed her to apply for orders compelling the corporation to abide by the terms of the agreement dated April 12, 2007 between it and her.

The orders were granted after her advocate, Mr Harrison Kinyanjui, Mbogo had informed the court the ensuing limbo would jeopardise her career.

Further, it was her contention that being a highly trained and specialised career person, the position she holds has an impact on the corporation’s standing in the public.

Having been listed in the Nairobi Stock Exchange, any impression of a vacuum in leadership automatically impacts negatively on Kenya Re’s stock, she said.

Kenya Re accused her of obtaining the orders after

suppressing and withholding material facts from the court.

It said through its advocate that she had failed to inform the court a meeting was held on April 8, the contract considered on merits and the decision communicated to her.