John Ngumi resigns as Kenya Airways independent director

Kenya Airways board of directors chairman Michael Joseph subsequently announced the appointment of James David Kabereri as an independent non-executive director in the interim in Mr Ngumi’s replacement, pending an annual general meeting.

“The Board announces the resignation of Mr John Ngumi as an independent non-executive director of the company,” Mr Joseph said in a statement on Friday.

This is Ngumi's second high-profile resignation after he quit as Safaricom's board chairman and director in January just after just five months in office.

Mr Ngumi’s exit comes barely three weeks after rushing to court to bar the anti-graft agency Ethics and Anti-Corruption Commission (EACC) and the Office of the Director of Public Prosecutions (ODPP) from prosecuting him.

“My departure is motivated by my belief that now the tough work of stabilising KQ is starting to bear fruit, it is the right time for others to come in and build on the transformational platform that the Board and Management of KQ has created,” Mr Ngumi is quoted to have told KQ’s board.

“I remain a firm believer in KQ’s strategic and economic importance to Kenya, and I am confident that before long Kenyans will all recognise that KQ is worthy and deserving of the critical and invaluable support it has received, and continues receiving, from the Government.”

The exit of Mr Ngumi from the national carrier deepens the mystery for the investment banker, who has been on the radar of several anti-graft agencies, his latest appearance in public being before the National Assembly’s Finance and National Planning and the Communication, Innovation and Information committees that are jointly probing the acquisition of Telkom Kenya for Ksh.6.2 billion.

Nevertheless, Mr Ngumi has pushed back the State after rushing to Court where he was granted orders baring his arrest and prosecution, for what he termed in court papers as the State's resolve to pursue ex-president Uhuru Kenyatta’s cronies.

In a ruling seen by Citizen Digital, High Court judge Diana Kavedza put an injunction on the Bishop David Oginde-led EACC and DPP Noordin Haji from executing the arrest nor prosecution, for it will jeopardise his stellar banking career.

“Pending the hearing and determination of this application the respondents, their servants, agents, including law enforcement are restrained from arresting, detaining or harassing the applicant,” the judge ruled in reference to EACC and ODPP officials.

While the judge ordered him to sign an anticipatory bail of Ksh.500,000 and ordered him to appear at the EACC in person for questioning, it could not immediately be established whether he honoured the directive or not. 

National Assembly’s Finance and National Planning and the Communication, Innovation and Information committees are jointly investigating the acquisition of Telkom Kenya, in which Mr Ngumi is believed to have been at the centre of providing alleged bangled advisory to the Treasury.

He would later appear before the committees to explain his role in advising the government on the acquisition. At the time of his appearance, Mr Ngumi awed the lawmakers when he said he was paid millions for being smart.

“I was paid because I was the best in business; I had helped the UK firm save money and make a better decision. The money will come back into Kenya and I will spend the money, but I will pay 30 per cent,” said Ngumi.

“The purpose is to maximize returns. It needs the highest advice so that it does not make mistakes, so you go and get the best in business.”

In the unfolding probe, the government paid Ksh.6.2 billion without the approval of the National Assembly, to Helios Investors LLP through Jamhuri Holdings Ltd (JHL), its Special Purpose Vehicle (SPV), in August last year.

In the deal, Mr Ngumi was paid Ksh.362.1 million ($3.07 million) by JHL, for his advisory services.