CIC chief executive cuts contract short

CIC Insurance Group’s chief executive Tom Gitogo has left the company abruptly, cutting short his contract that was set to expire in February next year.

In announcing the departure, the Nairobi Securities Exchange-listed firm did not say why the executive left on Wednesday.

“The board of directors of CIC Insurance Group Plc would like to announce the departure of its Group CEO effective October 9, 2019,” the insurer said in a notice.

“Mr Tom Gitogo has been with CIC Insurance Group Plc since 2014 and opted to step down before expiry of his contract on February 28, 2020.”

The company has appointed Elijah Wachira to act as the Chief Executive as it seeks a substantive replacement.

Mr Gitogo joined CIC in 2014 when he replaced Nelson Kuria who retired after holding the Chief Executive position for many years.

He leaves after the company repaid its Sh5 billion corporate bond last week.

Mr Gitogo had also initiated plans to sell the insurer’s 712 acres of freehold land.

He told the Business Daily that he is taking a short break before taking on new assignments.

“I want to rest a bit. There are several options but that is for later,” he said in reference to his future professional engagements.

Mr Gitogo’s term at CIC has been turbulent, characterised by a decline across various performance measures.

The insurer’s market capitalisation, for instance, has dropped 68 percent from Sh25.1 billion in December 2014 to Sh8 billion on Wednesday.

Mr Gitogo steadily bought the company’s shares and, as of July, had accumulated 10.5 million units with a current market value of Sh32 million.

This saw him rank seventh in the list of the company’s top individual investors.

Over his tenure, CIC’s earnings and shareholder funds also dropped, partly due to losses at its regional subsidiaries, increased competition and the weak stock market.