Former MUA Insurance (Kenya) Limited Chief Executive Officer Lydia Kibaara has threatened to sue her former employer over what she terms as false and defamatory allegations linking her to a Sh1.6 billion fraud at the insurer.
Through lawyer Danstan Omari, Kibaara issued a seven-day ultimatum to MUA Group to retract the claims, publish an unconditional apology, and enter into talks over damages, or face legal action.
The dispute stems from a Business Daily article of September 23 titled “Mauritian firm MUA takes Sh1.6bn hit in Kenya fraud,” which reported that Kibaara was dismissed from her role as CEO and tied her tenure to hidden liabilities at the company.
Omari insisted the claims are untrue, alleging that she left the company in 2024 under a mutually negotiated separation agreement that expressly barred either party from disparaging the other.
According to Omari, a forensic audit by PwC, commissioned by MUA, reportedly cleared her of any wrongdoing.
“Our client was never dismissed, never accused of fraud, and left under amicable terms,” the lawyers state in their letter.
“The allegations have caused her humiliation, distress, and grave reputational harm.”
Kibaara demanded that MUA admits breaching the separation agreement, publicly retracts and apologizes, and stops further disparaging statements.
She also wanted MUA to run an apology with equal prominence.
“Publish, with equal prominence, a public retraction and unconditional apology, affirming that our client was not dismissed, was never implicated in fraud, and left under a mutually negotiated agreement,” read the demand letter.
Kibaara, who has worked in the insurance industry for 27 years with senior roles at Britam, Jubilee, and Saham Assurance before joining MUA, has described the reports as damaging to both her professional and personal life.
If the demands are not met, her lawyer said they will move to court seeking aggravated damages, injunctions, and costs.
“Our client conducted herself with fidelity and good faith throughout her service with MUA and in the manner of her exit. She expects, and is entitled to, reciprocal fidelity from MUA. It is now incumbent upon you, to correct the record, honour your contractual obligations, and mitigate the damage caused,” said Omari.
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