The anti-corruption court on Tuesday slapped former Kenya Reinsurance Corporation Managing Director Johnson Jackson Githaka with a fine of Sh15.2 million for stealing Sh7.26 million.
Mr Githaka also risks spending two years in prison should he fail to pay the multi-million fine.
The Court heard that Githaka, the then Kenya-Re MD and Statutory Manager United Insurance Company, embezzled Sh7.2 million paid to the Nairobi-based re-insurance company by United Insurance Corporation.
The amount was paid under Statutory Management of Kenya-Re and was purported to be agency fees.
The misappropriated amount was 3 percent of Sh242 million, the total amount used for the purchase of United Insurance Towers by PTA Reinsurance Company.
Githaka wrote to Muriu Mungai and Co. Advocates on January 27, 2006, instructing them to release the 3percent commission of the sale price to an agent who was not specified.
3percent of the Sh242million amounted to Sh7,260,000.
Investigations by the Ethics and Anti-Corruption Commission (EACC) indicate that Mr Githaka developed an appetite for quick cash when United Insurance Company was placed under statutory management by the Commissioner of Insurance on July 15, 2005.
According to EACC, there were no agents in the sale of United Insurance Towers as the process was through competitive bidding.
EACC also established that Mr Githaka used the loot to purchase Nairobi Block 90/298 situated in the posh Loresho estate in Nairobi and registered it in his name and that of his spouse.
In his ruling on Tuesday, Anti-Corruption Court Magistrate Felix Kombo stated that the State had proved the case of fraudulent acquisition of public property beyond reasonable doubt.