Corporate Governance in Risky Areas: The Case of Keith Beekmeyer and Xplico Insurance in Kenya

When a British entrepreneur confronts systemic corruption in the Kenyan insurance sector

The recent announcement of judicial reforms by Kenya's Chief Justice, Martha Koome, marks an ambitious attempt to thoroughly clean up the judicial system, which is plagued by corruption and chronic inefficiency. These changes, welcomed by business circles, could strengthen legal certainty for foreign investors in an environment long perceived as unstable.

It is against this backdrop of institutional turmoil that the case of Keith Beekmeyer, a British entrepreneur involved in the Xplico Insurance Company, arises. This case highlights the glaring challenges of corporate governance in emerging markets, where opacity, corruption, and political risks hamper legitimate economic ambitions.

Rapid growth in a buoyant market

Founded in 2009, Xplico Insurance started at the bottom of the Kenyan rankings (42nd out of 42). In just three years, the insurer climbed to 12th place thanks to a strategy focused on growth markets such as microinsurance, Islamic Takaful products, and credit risk coverage.

But in 2011, Keith Beekmeyer was forced to take over the reins of the company following allegations of financial mismanagement against Patrick Ndirangu, then CEO, and Altaf Bhurawala, chairman of the board.

Embezzlement of more than 2 million dollars

An investigation by an independent law firm has revealed that Altaf Bhurawala, with the complicity of Patrick Ndirangu, embezzled more than $2 million. Xplico funds were transferred from Standard Bank in Nairobi to a NatWest account in Ilford, in the name of Fibre Link – a company controlled by Bhurawala.

Warnings ignored by the authorities

Determined to achieve justice, Keith Beekmeyer reported these incidents to multiple authorities: the Kenyan police, the Anti-Corruption Authority, the Insurance Regulatory Authority, Companies House, the immigration service, the Serious Fraud Office (UK), the Solicitor Regulation Authority, and even the Attorney General's office. Despite these repeated efforts, the institutional response remains tepid, illustrating the current limits of the rule of law in high-risk markets.