A significant ruling by the State Corporations Appeal Tribunal has cast a critical spotlight on the intricate workings of remuneration within Kenya's state corporations. Ezekiel Mutua, the outspoken former Chief Executive Officer of the Kenya Film Classification Board (KFCB), now faces an order to refund the government Ksh.27 million. This substantial sum represents the salary increment he allegedly earned irregularly during his second term in office, a decision that sends a clear message regarding accountability in public service.
The heart of the dispute lies in a salary adjustment that saw Mutua's monthly remuneration soar from Ksh.348,840 to a staggering Ksh.1.1 million for a period of three years. This dramatic increase was deemed unlawful and irregular by the Tribunal, following detailed allegations presented by the Inspectorate of the State Corporations.
According to the Inspectorate, the renewal of Mutua's contract in 2018 was itself contentious, having proceeded despite the explicit refusal of the then-Sports Cabinet Secretary to sanction his second term. Furthermore, the Inspectorate's findings revealed that the KFCB board’s decision to award the CEO this substantial salary increase was made on a ‘personal to self’ basis. This move was deemed to have contravened established protocols, particularly given that salary increments for state corporation executives are strictly determined by the Salaries and Remuneration Commission (SRC), a body tasked with ensuring fairness and equity in public sector pay.
The Inspectorate’s strong stance was that since Mutua had actively participated in the Board meeting that approved his own salary increment and subsequently directly benefited from it, he ought to be surcharged. This points to a significant breach of ethical conduct and corporate governance principles, where an individual should not be involved in decisions directly impacting their personal financial gain.
Compounding the issue, the Cabinet Secretary, upon learning of the irregular pay hike, reportedly rejected it and issued a directive to the KFCB board to recoup the unapproved funds. However, the KFCB board allegedly failed to pursue these directives, necessitating the intervention of the State Corporations Appeal Tribunal to enforce accountability.
In his defense, Mutua pleaded his innocence, asserting that he was simply a beneficiary of decisions made by the board. He contended that his second term and the associated salary increment were granted to him by the board, and therefore, he was not at fault. His argument further suggested that his continued service and receipt of the increased salary, "without any objections, reservations and or queries from the Cabinet Secretary," led him to legitimately believe that he was discharging his duties lawfully and had been properly appointed by the board. This defense implied a lack of direct knowledge or responsibility for the procedural irregularities.
However, after meticulously hearing arguments from both the Inspectorate of State Corporations and Mutua's legal team, the Tribunal delivered a decisive ruling. It concluded that both Ezekiel Mutua himself and Nehemiah Koech, a KFCB board member who had explicitly supported the controversial salary increment, were liable for enabling the irregular hike. This shared liability underscores the Tribunal's view that both direct beneficiaries and those facilitating such irregular decisions must bear responsibility.
