Tribunal Declares Ezekiel Mutua’s Sh27.6 Million Salary Hike Irregular, Orders Refund
In a significant ruling highlighting the importance of financial accountability in public service, the State Corporations Appeal Tribunal has upheld a directive requiring former Kenya Film Classification Board (KFCB) CEO, Ezekiel Mutua, to refund a total of Sh27.6 million earned through what has been deemed an irregular salary increment.
The tribunal also confirmed a Sh2.8 million surcharge on former board member Nehemiah Kipkoech, who was found complicit in approving the controversial pay rise.
The tribunal, chaired by Justice Aggrey Muchelule, concluded that the salary increment granted to Mutua in January 2019 was unauthorized and violated both the Constitution and existing public service remuneration protocols. Mutua’s monthly salary had been nearly tripled from Sh348,840 to Sh1,115,850, with an additional monthly entertainment allowance of Sh100,000, without the necessary approvals from the Salaries and Remuneration Commission (SRC), the State Corporations Advisory Committee (SCAC), or the parent ministry.
The case dates back to October 2018, when the KFCB Board controversially renewed Mutua’s term without approval from the Cabinet Secretary for Sports and Culture, who had expressly declined to reappoint him. Despite this, the board went on to grant the massive salary increase in January 2019 and only sought approval retroactively in April of that year.
The Cabinet Secretary rejected the request and directed that any excess payments be recovered. However, the board failed to act on the directive, allowing Mutua to continue receiving the inflated salary until his exit in 2021.
The tribunal faulted both Mutua and Kipkoech for knowingly participating in and benefitting from an irregular decision that flouted established governance procedures. It found that their actions led to a loss of public funds and violated Article 230 of the Constitution as well as Section 11 of the SRC Act, which outlines the proper procedures for determining public officers’ remuneration.
The ruling emphasized that state corporations cannot unilaterally alter pay structures for senior officials without going through the mandated regulatory bodies. It further noted that the board’s inaction even after the Cabinet Secretary’s directive represented a serious governance lapse.
With the decision now formalized, both Mutua and Kipkoech have 30 days to appeal. If they do not, they will be required to refund the entire sum to the state. The ruling sets a powerful precedent for how public resources must be managed, especially when it comes to compensation in state corporations.
