A multi million shillings insurance cover for the Laikipia County Executive motor vehicles pool has come back to haunt former Governor Nderitu Muriithi. The Weekly Vision has learnt that the county spent Ksh. 7,811,268 on an insurance firm in respect of the provision of motor vehicle insurance cover for motor vehicles for a period effective from January 2021 to January 2022.
However, in October 2021, the contract was abruptly cancelled without explanation after having paid the full contract amount then the same contract was awarded to another insurance firm at a slightly lower figure of Ksh. 7,772,640. This move led to a loss of Ksh.1, 952,817 of taxpayers’ money.
The County Executive had 110 motor vehicles but had only insured 73 motor vehicles while 4 grounded motor vehicles were also included in the insurance cover. The failure to insure 37 motor vehicles exposed the County Executive to legal liability in case of an accident.
The County Executive also paid an insurance firm Ksh. 3,182,750 for an extension of the provision of motor vehicle insurance cover contracts for December 2019 and January 2020. The previous annual contract for the provision of motor vehicles insurance cover contract sum was Ksh. 9,245,502 vide tender no LCG/B051/MVINS/2018/2019.
The contract was effective from 1 December 2018 to 30th November 2019. However, the breakdown or detailed analysis of how an amount of Ksh. 3,182,750 for the extension of insurance cover was arrived at is not clear.