DCI Targets Old Mutual and Sedgwick Bosses in Multi-Million KPC Tender Fraud Scandal

Top managers at Old Mutual General Insurance Limited, a subsidiary of Old Mutual Holdings PLC, and Sedgwick Insurance Brokers (SIB) have emerged as prime suspects in a multi-million-shilling tender fraud probe led by the Directorate of Criminal Investigations (DCI).

The investigation, which could see these executives become “guests of the state,” centers on an alleged illegal premium adjustment scheme tied to a lucrative insurance contract with the Kenya Pipeline Company (KPC), Kenya Insights can authoritatively reveal.

The DCI has narrowed its focus to Old Mutual—formerly UAP—and SIB, with preliminary findings pointing to a collusive effort to manipulate premiums worth approximately KES 286,763,349 (around USD 1,911,755.66) to align with market rates after securing the tender.

The case, logged under Inquiry File No. 185/2024, accuses the firms of conspiracy and violations of the Insurance Act, unraveling a complex web of bids, legal battles, and a mysterious death that has intensified scrutiny.

At the heart of the scandal is the tragic suicide of Sammy Methu Kiragu, former Chief Executive Officer of Sedgwick Insurance Brokers.

On Tuesday, March 11, 2025, Kiragu leapt to his death from the seventh floor of 4th Avenue Towers—despite his office being on the 14th—just one day before he was due to face DCI’s Insurance Fraud Investigation Unit (IFIU) on March 12.

The late Sammy Methu Kiragu, Chief Executive Officer of Sedgwick Insurance Brokers.

Witnesses reported that Kiragu took a lift to the seventh floor before jumping, an act that ended his life instantly and left his staff in shock.

While the exact cause of his death and the circumstances surrounding it remain unclear, the timing has broadened the scope of the DCI’s probe.

Sources suggest Kiragu, overwhelmed by the investigation, had sought help to halt the inquiry into his company’s dealings.

The tender in question, No. KPC/UOT-298/FIN/NBI/22-23, was advertised by KPC on March 28, 2023, seeking insurance brokerage services from July 1, 2023, to June 30, 2025. Of 31 bidders, Sedgwick and Four M Insurance Brokers Limited emerged as frontrunners after preliminary and technical evaluations.

Sedgwick’s bid, the lowest, earned it a notification of success on June 7, 2023, followed by KPC’s formal award of three insurance policies on June 21, which Sedgwick accepted five days later.

However, on September 7, 2023, after Sedgwick submitted Old Mutual General Insurance Kenya Limited as its underwriter, KPC abruptly awarded the tender to Four M, signing a contract on October 2.

Sedgwick challenged this decision before the Public Procurement Administrative Review Board (PPARB), which on November 2, 2023, nullified Four M’s award. Four M fought back, filing Judicial Review Application No. E121 of 2023 in Nairobi’s High Court.

The court ruled against Sedgwick, finding its bid illegal under Section 20 of the Insurance Act due to its lead underwriter, Swiss Reinsurance—an international firm unregistered in Kenya. Swiss Reinsurance had quoted coverage costs of KES 335,555,850 (approximately USD 2,237,039) for FY 2023/24 and KES 380,337,450 (approximately USD 2,535,583) for FY 2024/25—far exceeding Sedgwick’s bid—exposing its inability to deliver at the promised price.

The court accused Sedgwick of attempting to adjust its bid post-award, a move deemed unlawful without approval under Section 139(1)(a) of the Act, and upheld Four M’s contract with KPC.

The DCI’s investigation gained momentum with a letter dated February 18, 2025, from Daniel Kandie, former head of the IFIU, summoning Old Mutual to nominate a representative for questioning on February 21 and ordering Sedgwick officials, including Kiragu, to appear on March 12.

The letter seen by Kenya Insights detailed evidence of prior arrangements between Sedgwick and Old Mutual to adjust premiums to the suspiciously precise figure of KES 286,763,349, allegedly to suit market rates after winning the tender.

When contacted, neither Arthur Oginga, Group CEO of Old Mutual Holdings PLC, nor Japheth Ogalloh, Managing Director of Old Mutual General Insurance, responded to queries about whether they had recorded statements with the DCI.

Sedgwick, a 40-year-old firm with a prestigious client base—including airlines, energy providers, financial institutions, and NGOs—now faces a reputational crisis.

The tender saga raises troubling questions about collusion, capacity, and the integrity of Kenya’s procurement system.

Was Kiragu’s death a desperate escape from justice or a symptom of deeper corruption?

As the DCI digs further, the answers may expose the murky underbelly of this deal—and potentially others like it—ensuring that Kiragu’s final act does not bury the scandal with him.