NAIROBI — Former Kenya Film Classification Board (KFCB) CEO Ezekiel Mutua has been directed to repay KSh27 million he received through what has been ruled as an illegal salary increase during his second term in office.
The State Corporations Appeal Tribunal upheld a decision by the Inspectorate of State Corporations (ISC), which found that Mutua’s monthly pay was unlawfully raised from KSh348,840 to KSh1,115,850 following the renewal of his contract in 2018.
The tribunal determined that the board’s decision to approve the pay hike violated public service regulations, as it lacked approval from the Salaries and Remuneration Commission (SRC), the State Corporations Advisory Committee (SCAC), and the responsible Cabinet Secretary.
“The board’s decision to award a ‘personal to self’ salary increase was irregular and unlawful,” the tribunal ruled. “Mutua benefited directly and must be held responsible.”
The Inspectorate had initially issued the surcharge of KSh27,612,360 in October 2024, citing loss of public funds under Section 19 of the State Corporations Act. Mutua appealed the decision, claiming the board independently renewed his contract and adjusted his salary without objection from the relevant authorities.
In his defense, Mutua said he performed his duties in good faith, stating he received his pay with no formal complaints or intervention from the Cabinet Secretary. He argued that he assumed his appointment and compensation were valid.
However, the tribunal cited a chain of official correspondence that contradicted his claim. In May 2018, then-Cabinet Secretary for Sports and Heritage declined to renew Mutua’s term. But the board overruled the decision and extended his contract through a letter dated June 7, 2018.
The salary review process then began. On January 31, 2019, the Human Resource Committee presented split views on the proposed increase. Despite concerns, a majority of board members approved the increment.
The board sought retrospective approval from the Cabinet Secretary, who formally declined the request in April 2019. He instructed the board to reverse any payment already made under the proposed salary adjustment. The ruling noted that these directives were ignored.
“The Board failed to act on the directive to stop and recover the increment,” the tribunal noted. “That failure gave rise to the current matter.”
Also surcharged was board member Nehemiah Kipkoech, who participated in the approval process. The tribunal ruled that the entire process lacked legal standing and violated standard procedure.
The ruling detailed that Mutua’s first term ran from October 26, 2015, to October 21, 2018. His second term was granted by the board in defiance of the Cabinet Secretary’s decision and began on October 26, 2018.
“The increment was unprocedural, null, and void,” the ruling stated.
The case underscores the government’s ongoing scrutiny of irregular appointments and public fund mismanagement. It also highlights growing enforcement of accountability in state corporations.
Mutua is expected to refund the KSh27 million to the government, as ordered by the tribunal.
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