The Management Debacle Of Centum

In November 2021, a letter allegedly from insider disgruntled staff members went viral on blogs, the letter laid out on the sham of leadership and management that has been going on at Centum Investment Company.

“Over 40 staff members have been made redundant this year and many more have been forced to leave due to a toxic work environment. The Group CEO blames everyone for the failures of the business, especially employees, instead of taking responsibility (as a real leader should). In this, crusade against employees, the company will have saved a mere KES 100 million annually, in staff expenses while it bleeds a whooping KES 2.7 BILLION shillings annually in interest expense (which is growing fast, because of the compounding nature of interest).” Part of the letter reads.

It continues, “Secondly, we are doing this because we have no other choice, we did not have an avenue for whistleblowing in the business that is independent and objective. If this was possible, we would have brought it to the board’s attention earlier. So, we have chosen to take accountability of the firm to higher authorities than the Group CEO, who is a feared demi-god in the organization.”

“In your detailed assessment, we hope you see that the Company is operating on a ‘spend now and think later’ model where all money is spent in advance of income being realized. Additionally, you will also discover (only if you do a detailed review) the intricate web of debt that the company’s management has secured over the same period of time that currently stands at a staggering KES 34 billion shillings from 3 major banks and the commercial paper’s investors (over 120 retail investors). The collateral structure of the debt is completely convoluted and intertwined, such that if all the debt investors were to call in their collateral, the company would go into immediate insolvency. And a fun fact, is that, all the debt is set to mature in the same financial year, FY24/FY25. Such a coincidence in public funds mismanagement.” It states.

Wambua Forced To Resign

In what now appears to be a synonymous story, Wambua Kimeu, the group’s financial director was evicted in a stage managed resignation that was reported in the media. He was replaced with Risper Alaro.

Risper Alaro appointed as Centum’s group finance director effective March 15, 2022. PHOTO | COURTESY

Sources aware of the reality told Kenya Insights that Kimeu is a casualty of the internal battle between Centrum’s CEO James Mworia with the senior management. According to sources close to the board talking to our writer, Mr. Mworia has been uneasy with anyone opposed to his management policies.

Our sources further say that there’s a split within the Centum’s board as majority feel that Mworia has become unnecessary baggage for the company and should be let go while others feel that he’s an asset.

Back to Wambua, he was alleged to have masterminded the leakage of the confidential document that exposed the filth in the firm as managed by Mworia.

Under unclear circumstances, Ms Alaro was forced to take a sabbatical leave in 2018 following tax evasion claims and that she couldn’t deliver on her position as Centum Business Solution Limited, a subsidiary that didn’t take off.

Ms. Alaro’s return is said not to be Mr. Mworia’s choice but foreign directors’ push.

Alaro failed at her previous position as Business Solutions and many wonder why she suddenly rose to this heights.

Kimeu was forced to resign and the excuses aired on the media doesn’t hold ground.

Familiar

Mworia is said to be a manager uncomfortable with criticism,according to our sources within the board.

In the heat of the moment, a consultant firm, Raisin Limited has fallen a victim of succession wars in Centum. The firm has taken Centum to court for shortchanging them in a deal.

In a civil case number HCCC/E032/2022, Francis, a former employee of Centum through his consultancy firm Raisin Limited, has sued Centum’s CEO James Mwirigi Mworia for defamation following his claims to the media on a Sh.17B investment standoff between the two firms.

Francis in legal documents seen by Kenya Insights, had negotiated a Sh17B deal between Global Yield LLC under GEM and Centum Real Estate Limited.

Mworia in media reclamations, claimed that Raisin was being extortionist and that Francis was an imposter.

In retaliation, Raisin’s lawyer DBM Mosota wrote to Centum in January 17 with the demands, saying it sourced for investors and introduced Global Emerging Markets (GEM) to Centum. Since then, it has been a back and forth pull between the two parties.

We unsuccessfully sought for comments from the main investor Chris Brown.

The CEO Mworia according to documents reviewed by Kenya Insights, had attempted to use the DCI to harass and intimidate Francis. According to a letter dated 15th February addressed to the DCI, Mosota highlighted the plight of his client, “the Managing Director and CEO for the Complaint( in reference to Mworia) has by various emails, texts and calls requested for us to meet and resolve the civil dispute.”

It continues, “It is therefore outrageous and a blatant breach of your Constitutional, Statutory and civil duty to exert your office or allow it to be so exerted, in a civil dispute between Kenyans with equal rights. As a public office, you are bound by the provisions of Article 10 and Chapter six of the
constitution of Kenya, The National Police Act, the Public Officer Ethics Act and the National Police
Service Standing Order, to act in a manner befitting of a State Office and your officers to so
conduct themselves.”

Francis in writing, has agreed to comply to the law and ready to present himself to the DCI through a formal summon that his lawyer insists on, “We therefore demand that you immediately cease from harassing or intimidating our client, or in any way allow your officers to be used as a
weapon to settle civil scores. Failure to do so, we shall institute proceedings against you for violation of our Clients Constitutional rights and breach of your duty.” Reads the letter to the DCI.

From our numerous sources, none of the executives leaving the firm have done it voluntarily, in a common situation, those leaving at a point must’ve disagreed with CEO Mworia.

Samuel Kariuki, a senior managing director at Centum, had to leave his job after allegedly being maligned and muddied in a supposed well coordinated battle that included online pounding from presumed Centum’s messengers.

We’re also informed that a Mr. Keneth Gitonga Mbae, Managing Director Vipingo Development, a subsidiary of Centum Real Estate, has been fighting hook and crook to replace Samuel Kariuki.

Kenneth Gitonga Mbae.

In a shaken management staff, only a few like Pius Muchiri, Fred Murimi have remained in the company.

UPDATE:

Effective 17th March as we had predicted, Mbae has been appointed Keneth has been appointed to the managing director position which was previously held by Mr Samuel Kariuki who was forced to resign.

The appointment notice.