Ex-MUA CEO Demands Apology, Compensation Over ‘Defamatory’ Fraud Claims
They say the fallout has been devastating, humiliating, and distressful, causing reputational damage that has undone years of professional integrity.
A former MUA Insurance Company Kenya Chief Executive Officer has demanded a public apology and compensation after alleged defamatory statements made by her former employer.
Through her lawyers, Danstan Omari and Shadrack Wambui, Lydia Kibaara has given the Mauritian Parent Insurer and its Kenyan subsidiary seven days to admit breach of contract, issue an apology, and negotiate damages or face legal action.
Kibaara is distancing herself from a Business Daily article published on September 23, 2025, headlined “Mauritian firm MUA takes Khs. 1.6 bn hit in Kenya fraud.” The story, citing investor briefings attributed to MUA, claimed that she had been “dismissed” from her role and linked her tenure to fraud and hidden liabilities.
Her lawyers describe those allegations as false and a direct violation of a separation agreement signed last year, which expressly barred both sides from making disparaging remarks. The contract, they note, was designed to ensure Kibaara’s graceful and dignified exit after nearly three decades in the insurance industry.
“Our client was never dismissed; she exited under a mutually negotiated agreement. At no point was she accused of fraud or impropriety. In fact, the PwC forensic audit you commissioned cleared her name,” the letter states.
That audit, conducted by Price Waterhouse Coopers, concluded: “We did not identify sufficient evidence for us to conclude that there has been intentional concealment or dishonesty by any party.”
Yet, instead of preserving her reputation, MUA’s briefings painted a picture that left Kibaara branded as dishonest. Her lawyers argue that the company defamed her and breached its contractual obligations by either making or allowing such claims to stand uncorrected.
They say the fallout has been devastating, humiliating, and distressful, causing reputational damage that has undone years of professional integrity.
In their letter, the lawyers demand that MUA admit breach of contract, publish a retraction and apology with equal prominence, cease further disparagement, and open urgent negotiations on damages.
They warn that failure to comply will see MUA dragged to court, where the separation agreement and the offending publications will be tabled as evidence of breach.
For Kibaara, whose career has spanned Britam, Jubilee, Saham Assurance, and MUA, the battle is not just about damages. It is about defending a reputation built over 27 years and holding a corporate giant to the promises it made.
