Former Lancet chief executive officer and co-founder Ahmed Kalebi has demanded for a Sh. 3.6 billion compensation from the laboratory services business. This follows a fallout with his French and South African partners that saw him exit the business in April 2021.
In his demand, Ahmed Kalebi has sued Lancet Kenya and shareholders, French firm Cebra Healthcare and Lancet Service Company of South Africa.
Kalebi says in his suit that fellow shareholders sidelined him from Lancet operations. This he said included the hiring of executives and the dilution of his ownership from 20 percent to 10 percent.
“I have been on record since 2010 and over the years to date demanding my sweat equity to be compensated, but the board of directors under the majority shareholder have been blatantly ignoring the matter all these 10-12 years, and ultimately rejected the claim for sweat compensation upon my exit in April 2021 from the directorship and management of the company,” Kalebi said in the suit papers. “The plaintiff’s claim against the defendants jointly and or severally is for liquidated claim of Sh. 3,587,641,559 plus general damages.” He is being represented in court by lawyer Donald Kipkorir.
In early 2021, Kalebi who is a pathologist had informed his South African and French partners of his intention to quit the firm on April 30 when his employment contract as East Africa CEO and chief consultant pathologist would expire. He sought nearly Sh. 1.9 billion in his letter of demand.
“The current term under the aforementioned employment contract is set to lapse on 30th April 2021 and our client does not wish to apply for a new term. The total claim under the employment contract and under shareholder agreement is Sh. 1,851,879,151.75 which sums our client claims,” he said in his letter prior to his retirement.
Lancet Kenya in 2020 returned a profit of Sh. 306 million in 2020 on sales of Sh. 1.6 billion. Kalebi founded Lancet Kenya in 2009 as an offshoot of its parent company in South Africa. Lancet Kenya is operated under Pathologist Lancet Kenya (PLK) and Lancet Services Company (LSC).
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In 2019, France-based multinational Cerba Healthcare bought shares in South Africa’s Lancet Laboratories in a deal that saw it take control of the East African unit which was headed by Kalebi. Lancet SA holds a 49 percent stake in the joint venture while Cerba Healthcare has 51 percent. The acquisition saw Cerba become the majority shareholder of Lancet Kenya while Kalebi remained a minority shareholder with an estimated 20 percent stake. This is the stake he claims has been diluted to 10 percent.
