Former director of Kenya Reinsurance Corporation (Kenya Re) Johnson Jackson Gathaka has been sentenced to two years in prison or a fine of Ksh15 million over fraud.
Mr Gathaka was found guilty by the anti-corruption court of stealing Ksh7.26 million.
The anti-corruption court found that Gathaka fraudulently obtained Ksh7.26 million paid by United Insurance Corporation to Kenya Re.
Commenting on the case, the Ethics and Anti-Corruption Commission (EACC) noted that Gathaka sought to acquire quick money when United Insurance Company was placed under statutory management by the commissioner of Insurance on July 15, 2005.
The Commissioner of Insurance appointed Kenya Re as the statutory manager of United Insurance in a bid to improve its liquidity.
The misappropriated amount was 3 per cent of Ksh242 million, the total amount used to purchase United Insurance Towers by PTA Reinsurance Company.
EACC further stated that through its interrogations, the agency realized that there were no agents in the sale of United Insurance Towers as claimed by Gathaka.
The anti-corruption agency also stated that Gathaka used the said amount to purchase Nairobi Block 90/298 situated at Loresho registered in his name and that of his spouse.