Former Kenya Film Classification Board (KFCB) Chief Executive Officer Ezekiel Mutua has been directed to reimburse Sh27 million that he received through an unlawful salary adjustment during his second term in office.

The State Corporations Appeal Tribunal reached the decision following a complaint by the Inspectorate of State Corporations (ISC), which argued that Mutua’s pay was irregularly increased from Sh348,840 to Sh1,115,850 after the board unilaterally renewed his contract without proper authorization.

He went on to earn the inflated salary for three years, prompting a total surcharge of Sh27,612,360 under Section 19 of the State Corporations Act.

According to the ISC, the renewal of Mutua’s contract and subsequent salary revision bypassed necessary approvals from the Salaries and Remuneration Commission (SRC), the State Corporations Advisory Committee (SCAC), and the relevant Cabinet Secretary.

The inspectorate described the move as a loss of public funds and cited the board’s decision to award the salary increment on a “personal to holder” basis as both unlawful and improper, particularly since Mutua himself sat on the board and directly benefited from the decision.

Government circulars are typically issued to enforce uniform salary structures across public entities, the ISC noted, further asserting that KFCB’s actions disregarded such guidance.

Tribunal documents indicate that Mutua's first term ran from October 26, 2015, to October 21, 2018. As his term neared completion, he formally requested an extension. The board chair then wrote to the Sports and Heritage Cabinet Secretary on May 14, 2018, seeking approval for a contract renewal.

However, in a letter dated May 29, 2018, the Cabinet Secretary declined to renew the contract. Despite this, the board proceeded to extend Mutua’s tenure for another three years starting October 26, 2018.

Following the renewal, the board tasked its Human Resource and Administration Committee with reviewing Mutua’s salary based on his previous performance. Although the committee held differing views on the matter, the majority of the board endorsed the salary hike during a meeting on January 31, 2019.

That same day, the board sought the Cabinet Secretary’s approval to formalize the increment. In a response dated April 30, 2019, the Cabinet Secretary declined the request and instructed the board to recover any overpaid amounts if the raise had already been implemented.

Despite this directive, there is no indication that the board acted on the order to halt or reverse the pay increase. This failure to comply laid the foundation for the tribunal’s ruling.

In his defense, Mutua argued that he merely acted in accordance with the board’s decisions and had no reason to question the legitimacy of his reappointment or pay. He said he continued to serve and receive his salary without any objection from the relevant authorities, leading him to believe the process was lawful.

Also found culpable was KFCB board member Nehemiah Kipkoech, who was surcharged for his role in approving the contested salary increment.

The tribunal ultimately ruled that the entire process was in violation of established legal and administrative procedures, rendering the salary adjustment invalid.