How Kenyan Insurance Companies assisted Ex-KPLC MD to launder money

Former Kenya Power and Lighting Company MD Samuel Gichuru

Mr Gichuru was found guilty of money laundering activities, part of which was then clandestinely wired back to Kenya through insurance companies and brokerage firms whose directors at the time are likely to face prosecution


By The Weekly Vision Online Investigations Desk

The long-serving ex-Kenya Power and Lighting Company MD Samuel Gichuru remains a wanted fugitive in the Cayman Islands for money laundering.

Sources claim that Mr Gichuru, now well past 75 years of age, had used Madison Insurance, Consolidated Insurance Brokers, and Millennium Insurance to lounder Ksh. 200 million masked as insurance premiums on the Turkwel Gorge Power Station and Kengen expansions projects.

Mr Gichuru was found guilty of money laundering activities part of which was then clandestinely wired back to Kenya through insurance companies and brokerage firms whose directors at the time are likely to face prosecution.

 According to informed sources within Interpol in both Europe and Nairobi that spoke to The Weekly Vision Online, investigations are ongoing to establish the extent to which some local insurance companies aided Mr Gichuru in the money laundering syndicate. The sources added that once the investigation is completed more people could face money laundering charges in court. 

While Turkwel in Turkana County and Kerio valley ended up as ‘white elephants” Mr Gichuru and his accomplices laughed all the way to the bank several million richer. At one time brokers who have been beneficiaries of tenders through single sourcing locked horns over the splitting Ksh. 20 million in a joint insurance brokerage and the matter went to court in 1994-95.

Sources speaking to The Weekly Vision Online said ‘Madison” was “politically correct” during both in the Moi and Kibaki era and had enjoyed millions of shillings without its “indemnity” status ever being questioned

The two feuding brokers later agreed on an out of court settlement, CIB kept Ksh. 17m while Millennium received Ksh. 3m in instalments. The CIB associated with former Nyeri town MP P.G. Mureithi argued that even out of what it was holding more than 50 per cent would be banked directly to a numbered Cayman bank account for Gichuru.

This confirms growing fears by Interpol of the intricate web of plunder by Gichuru and his associates. Madison was the official insurance company covering all major Kenya power assets, movable and fixed, millions of premiums were remitted every year but a huge chunk also ended in Jersey.

Sources speaking to The Weekly Vision Online said ‘Madison” was “politically correct” during both in the Moi and Kibaki era and had enjoyed millions of shillings without its “indemnity” status ever being questioned. Even during the “artificially generated” black-outs of 1990-96 to allow Guchuru firms sell generators Madison covered the entire import at sea and on land making a fortune translated in lavish lifestyles of directors and princely assets including luxury mansions.

Mr Gichuru was accused and found guilty of draining dams by diverting water away and triggering the “power rationing” whose paralyzing impact was felt throughout the 1990s. Despite the notorious blackouts, which Kenyans had been subjected to, punitive billings most of it outright extortion as it claimed forex and fuel for water turbines in dry dams that was no longer working!

Mr Gichuru and former finance minister Chris Okemo were found guilty of money laundering and ordered to serve a 7-year jail term by a Jersey court but have been on the run since.

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