John Faustin Kinyua, a former finance director at the Kenya Reinsurance Corporation, was on Friday sentenced to another three years in prison for fraud.
Mr Kinyua had been serving a three-year jail term for allegedly tricking taxpayers into buying a house at Embakasi’s Villa Franca Estate.
Senior Principal Magistrate Felix Kombo issued the fresh sentence on Friday in a case in which Mr Kinyua and one Mary Njeri Ng’ang’a Kimingi are accused of fraud in the sale of a house in Karen, Nairobi, that belonged to the corporation.
Several Kenya Re officials are accused of hatching a scheme in which Rockhound, where Ms Kimingi is a director, did not pay for the house as monies presented to the reinsurer had been premiums collected from two insurance firms.
According to court findings, the officials claimed Sh12,132,504 was deposited from the sale of the house but in reality, the money had come from Alexander Forbes (now Eagle Africa Insurance Brokers Limited) and United Insurance Company in form of premiums.
Mr Kinyua and Mr Kimingi were also convicted of claiming Sh132,504 from Kenya Re, alleged to be an overpayment in the purchase of the house.
During sentencing on Friday, the magistrate did not give Mr Kinyua the option of a fine.
The former finance director had pleaded for leniency saying he was sick and that his condition would worsen in prison.
He also said he had suffered emotionally and materially since 2005, when the property on Ndege Road in Karen was sold.
The court noted, however, that there was no medical evidence to back his claims.
Ms Kimingi was given a non-custodial sentence; Mr Kombo directed her to pay a fine of Sh1 million for fraudulently acquiring the property. She was also fined Sh500,000 for acquiring the Sh132,504.
In default, the court said, she will serve a total of 18 months in prison for the two counts.
Mr Kombo explained that he could not ignore the fact that Ms Kimingi was a single mother of three and that her sick mother depended on her.
In the ruling, Mr Kombo said, “From my judgment, it is clear that fraud was jointly perpetrated against Kenya Re, which ended in a benefit to the accused persons, thus a receipt of title to the property."
He added, "They acted in concert and therefore the benefit of the property, which is public, accrued to all of them. The value of the property was paid to Kenya Re using its own money."
The magistrate ordered Rockhound to pay Sh1 million, a cost to be borne by its directors who risk serving six months in prison, should they default.
He also directed the Chief Lands Registrar to cancel the title deed issued to Rockhound and restore the property's ownership to Kenya Re.
The law firm of Muriu Mungai, which admitted that it was holding the Sh132,504 was ordered to return the amount to the corporation within seven days.