Thursday, March 13, 2025 - Fresh details have emerged regarding the circumstances surrounding the death of Sedgwick Insurance Brokers CEO Sammy Methu Kiragu at 4th Avenue Towers on Fourth Ngong Avenue, Nairobi, on Tuesday afternoon.
Reports now reveal that Kiragu was under investigation over
allegations of fraud linked to a Ksh240 million insurance tender at the Kenya
Pipeline Company (KPC).
Sedgwick Kenya Insurance Brokers had initially won the
tender after submitting the lowest financial bid.
The company received an official notification on June 7th,
2023, and a formal award letter on June 21st, 2023.
It accepted the award in writing on June 26th,
2023, and forwarded confirmation of cover from Old Mutual General Insurance
Kenya Limited as the underwriter on September 7th, 2023.
However, KPC later awarded the contract to Four M Insurance
Brokers Limited on September 7th, 2023, and signed the deal on
October 2nd, 2023.
Sedgwick challenged this decision before the Public
Procurement Administrative Review Board (PPARB), which ruled in its favour on
November 2nd, 2023, nullifying KPC’s award to Four M.
Four M then moved to the High Court in a judicial review
application.
The court ruled that Sedgwick’s bid was non-compliant as it
lacked the financial capacity to honour its bid terms.
It found that Sedgwick had attempted to adjust its pricing
after winning the tender, a violation of procurement laws.
The ruling cited breaches of Section 167(1) of the Public
Procurement and Asset Disposal Act and Section 20 of the Insurance Act, stating
that Sedgwick’s bid was tainted with illegality.
The court upheld KPC’s decision to award the tender to Four
M.
Investigators later established that Sedgwick had colluded
with UAP Old Mutual Insurance Company Limited to manipulate premium adjustments
to match market prices.
The Directorate of Criminal Investigations (DCI) opened an
inquiry under file number 185/2024.
Senior officials from UAP Old Mutual had already recorded
statements, and Sedgwick executives were due for questioning when Kiragu died.
A letter from the Insurance Fraud Investigations Unit, dated
February 18th, 2025, summoned UAP representatives to explain their
role in the tendering process.
The letter stated that preliminary investigations had
revealed an agreement between Sedgwick and UAP Old Mutual to adjust premiums to
fit a predetermined figure of USD 1,911,755.66.
Kiragu was scheduled to appear before investigators on
Wednesday, March 12th, 2025, a day after his death.
The Sedgwick CEO jumped from the seventh floor of 4th Avenue
Towers on Tuesday afternoon, despite the firm operating from the 14th floor.
He died on the spot.
Police arrived at the scene, processed it, and moved the
body to the mortuary pending a post-mortem examination.
Sources suggest that pressure from the ongoing probe may
have contributed to his suicide.
Sedgwick Insurance Brokers has not issued any public
statement on the matter.
Police have confirmed that investigations into Kiragu’s
death are ongoing.
The Kenyan DAILY POST
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