Acting Kenya Re CEO risks jail over contempt of court

The Acting Chief Executive Officer (CEO) of Kenya Reinsurance Corporation Limited (Kenya Re) now risks being arrested after court found him guilty of contempt.

Senior Resident Magistrate Isaac Orenge found Jacqueline Njui and Company Secretary and Property manager of Galaxy auctioneers Stanley Mugacha of contempt and ordered them to pay a fine of Sh150,000 each, failure to which they will serve a jail term of one month.

“The respondents are guilty of contempt of court order made on December 31, 2018 and should each pay Sh150,000 or serve a jail term of 30 days,” ruled Orenge.

The magistrate also directed the OCS Central Police Station to ensure compliance of the court order restraining them from locking, leasing, selling or interfering with the shop situated on mezzanine floor of a shop space area pending the hearing and determination of the suit in court.

The orders were issued after a Director of Crown Limited Company Christopher Mbindyo applied that they be cited for contempt for failing to obey a court order that directed that the disputed premises should not be granted to the third party.

“The Reinsurance Company allowed the premises to be entered when there was a court order in force,” said Mbindyo.

Orenge added that the Reinsurance Company did not submit to court that there was an order in force before allowing the third party to enter the house.

“The plaintiff had paid all rent arrears to warrant the attachment of all her goods which were pro-claimable and non-proclaimable,” he said.

Mbindyo had informed the court that the company had refused to sign the agreement and instead allowed a new tenant despite a court order therefore exposing him to unlawful eviction and illegal distress by the Kenya Reinsurance Company.

“To my mind, if the defendants were not satisfied with orders, they could have attempted to get rid of it through the proper discourse either by setting it aside or though appeal,” ruled Orenge.