Former Kenya Film Classification Board (KFCB) CEO Ezekiel Mutua has been dealt a major blow after the State Corporations Appeal Tribunal ordered him to repay Ksh27 million he acquired during his second term.
According to the Tribunal's judgement, the salary increment by the former KFCB boss was irregular and illegal.
The tribunal upheld a previous surcharge by the Inspectorate of State Corporations (ISC), which had concluded that the pay raise violated public service protocols and amounted to misuse of public funds.
"The Certificate of Surcharge SUR/001/2024 for the sum of Ksh27,612,360 is upheld and confirmed against the Appellant," the ruling read in part.
According to the ruling, Mutua’s monthly salary was tripled from Ksh348,840 to Ksh1,115,850 following his reappointment as KFCB boss in 2018.
The raise was sanctioned by the KFCB board without the requisite approvals from key regulatory bodies such as the Salaries and Remuneration Commission (SRC), the State Corporations Advisory Committee (SCAC), or the Cabinet Secretary responsible.
The Inspectorate of State Corporations had initially surcharged Mutua in October 2024 under Section 19 of the State Corporations Act, citing direct personal benefit from a decision he was part of.
“The board’s decision to increase the CEO’s salary on a ‘personal to self’ basis was unlawful and irregular,” noted the surcharge letter.
Although the then Sports and Heritage CS declined to renew Mutua’s term in May 2018, the KFCB board proceeded with the reappointment just weeks later. Apart from extending his contract, the board also went ahead to direct the Human Resources and Administration committee to review his remuneration package based on perceived past performance.
Meeting minutes from January 2019 presented to the Tribunal showed that despite internal disagreements, the majority of the board members approved the hike.
The board then sought a retroactive endorsement from the Sports CS, who in April 2019 formally rejected the increment and ordered any funds already paid to be recovered, a directive that was never implemented.
In his defense, Mutua alleged that he operated under the assumption of legitimacy. He argued that the board had the authority to reappoint him and offer compensation based on merit.
The Tribunal was, however, unconvinced and ordered him to return the money he had accrued. The Tribunal also ruled that Mutua and Nehemiah Koech, a KFCB board member who supported the salary increment, were liable for enabling the irregular hike.
Mutua is yet to break his silence on the fresh orders.
