Kenya Reinsurance #ticker:KNRE has been fined Sh1 million for ending the contract of its former managing director, Eunice Mbogo, even after the court reversed the termination of her employment.
The Appellate Court ruled that there was evidence that the firm through its company secretary, Habil Waswani, was served court papers allowing Ms Mbogo access her office at Reinsurance Plaza.
Justices William Ouko, Gatembu Kairu and Agnes Murgor said Kenya Re should have waited for further directions from the court before replacing Ms Mbogo.
Ms Mbogo’s contract was not renewed after expiry of a three-year term on April 12, and she was replaced by Jadiah Mwarania, formerly general manager at the firm.
She had complained that she had been refused entry into the company premises.
Mr Waswani had earlier been named as the official frustrating the embattled MD.
The High Court had earlier cleared Kenya Re of contempt of court, prompting the appeal suit.
Ms Mbogo wanted the court to punish the board for refusing to heed its directive to reinstate the corporation’s CEO pending the hearing and determination of the dispute.