Former MUA Kenya CEO Lydia W. Kibaara has threatened to take legal action against the insurer and Business Daily newspaper after they ran a story implicating her in Sh 1.6 billion fraud.
According to a demand letter to the publisher, Kibaara denied claims that she was dismissed from the company due to “fraud and hidden liabilities.
Through lawyers Danstan Omari and Shadrack Wambui, Kibaara claims that she left Mauritius insurer following discussions with them where they mutually and voluntarily negotiated and executed a mutual termination and separation agreement.
“That agreement was the product of balanced, good-faith negotiation, culminating in an orderly and amicable separation. Of particular significance is Clause 10, which contains a clear mutual undertaking of non-disparagement that neither party would, directly or indirectly, make any statement or representation that would bring the other into disrepute or cause reputational harm,” Omari said.
On 23rd September 2025, the Business Daily published an article titled “Mauritian firm MUA takes Sh 1.6bn hit in Kenya fraud.”
It is alleged that the article, attributed expressly to investor briefings by MUA, falsely alleged that Kibaara’s tenure was linked to “fraud” and “hidden liabilities” and that she was “dismissed” from her role as CEO.
“These allegations are manifestly false. Our client was never dismissed; she left under the negotiated mutual separation agreement. She was never accused of fraud or impropriety,” Wambui added.
According to the lawyers when Kibaara engaged the newspaper regarding these publications, they admitted that the statements emanated from themselves but sought to qualify the matter by alleging that Business Daily “misquoted” or “misinterpreted” MUA.
“The prejudice suffered by our client is grave. She has been portrayed publicly as dishonest and fraudulent, imputations that have caused her humiliation, distress, and untold reputational damage, both personally and professionally.”
The former CEO has give the newspaper seven days to formally acknowledge and admit breach of Clause 10 of the Mutual Termination and Separation Agreement.
She also wants them to publish an unconditional apology with equal prominence and engage her in goof-faith negotiations on quantum of damages payable for breach of contract and reputational harm.