Death by Suicide of Insurance CEO Reveals Details of Murky Sh286M KPC Tender Scandal

The tragic suicide of Sammy Methu Kiragu, Chief Executive Officer of Sedgwick Insurance Brokers, has unveiled a scandal involving a controversial tender at the Kenya Pipeline Company (KPC).

Kiragu leapt to his death from the seventh floor of his office at 4th Avenue Towers on Tuesday, March 11, 2025, just a day before he was scheduled to face Directorate of Criminal Investigations (DCI) detectives over allegations of fraud and collusion tied to a lucrative insurance brokerage contract.

His death has sparked widespread speculation and drawn attention to the questionable dealings surrounding the KPC tender process.

The tender in question, No. KPC/UOT-298/FIN/NBI/22-23, sought insurance brokerage services for KPC from July 1, 2023, to June 30, 2025. Sedgwick Insurance Brokers (SIB) and UAP Old Mutual General Insurance Ltd became the focus of a DCI probe into allegations of premium manipulation and violations of the Insurance Act.

Sources close to the investigation revealed that Kiragu, overwhelmed by the mounting pressure, had sought help to halt the inquiry into his company’s actions.

A letter dated February 18, 2025, written by Daniel Kandie, former head of the Insurance Fraud Investigation Unit (IFIU), detailed evidence of prior arrangements between Sedgwick and UAP Old Mutual to adjust premiums to a suspiciously precise figure of KES 286,763,349 (approximately $1,911,755.66)—allegedly to align with market rates after securing the tender.
letter summoned UAP to nominate a representative for questioning on February 21, while Sedgwick officials, including Kiragu, were ordered to appear before the IFIU on March 12—the day after his fatal plunge.

The tender process was a complex web of bids, evaluations, and legal disputes.

On March 28, 2023, KPC advertised the contract in local dailies, attracting bids from 31 firms, including Sedgwick and Four M Insurance Brokers Limited.

After preliminary and technical evaluations, Sedgwick emerged as the lowest bidder and was notified of its success on June 7, 2023.

By June 21, KPC formally awarded Sedgwick three insurance policies, which the company accepted five days later.

However, the situation took a dramatic turn when Sedgwick submitted confirmation of cover from Old Mutual General Insurance Kenya Limited on September 7, 2023, only for KPC to abruptly award the tender to Four M that same day, with a contract signed on October 2.

Sedgwick appealed to the Public Procurement Administrative Review Board (PPARB), which nullified Four M’s award on November 2, 2023. Four M retaliated with a judicial review application (No. E121 of 2023) in Nairobi’s High Court, which ruled against Sedgwick.

The court found that Sedgwick’s bid was illegal under Section 20 of the Insurance Act, as its lead underwriter, Swiss Reinsurance, was an international firm unregistered in Kenya.

Additionally, Swiss Reinsurance had quoted coverage costs of KES 335,555,850 (approximately $2,237,039) for FY 2023/24 and KES 380,337,450 (approximately $2,535,583) for FY 2024/25—far exceeding Sedgwick’s bid—exposing the company’s inability to deliver at the promised price.

The High Court accused Sedgwick of attempting to adjust its bid post-award, a move deemed unlawful, and upheld Four M’s contract with KPC.

The DCI’s investigation, logged under Inquiry File No. 185/2024, had already questioned UAP senior officials, tightening the noose around Sedgwick.

Kiragu’s leap from the seventh floor—despite the company’s offices being on the 14th—suggests a man cornered by the weight of impending accountability.

Witnesses reported that he took a lift to the seventh floor before jumping, a deliberate act that ended his life on the spot and left his staff in shock.

Sedgwick, a firm with a 40-year legacy serving high-profile clients—including airlines, energy providers, and financial institutions—now faces intense scrutiny over its integrity.

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

Was Kiragu’s death a desperate escape from justice, or a symptom of deeper rot within the insurance and public sectors?

As the DCI digs further, the answers may reveal just how dirty this deal—and others like it—truly are.

For now, Kiragu’s final act has ensured that the KPC tender scandal will not be buried with him.