The Kenya Civil Aviation Authority (KCAA) is on the verge of forking out Sh258 million as former employees push it to the corner over unlawful dismissal by its predecessor Directorate of Civil Aviation 22 years ago.
KCAA, in its annual report for the fiscal year 2022/23, notes that it has since 2021 made provisions of Sh258.7 million in readiness to pay the 68 former employees, after the courts ruled in their favour over dismissal from the public service and malicious prosecution.
“On August 14, 2020, KCAA was served with a preliminary decree of Sh152,071,216 and a final decree of Sh28,229,748 for the wrongful dismissal and unlawful arrest of the former DCA employees. The amounts are salary arrears since April 18, 2002,” KCAA notes in the report.
But the Authority notes that the “major long-standing court case” that continues to hinder its compliance with statutory requirements remains unsettled, after there were errors on assessment of dues done by the court “and the same is pending determination by the court.”
Sh154.8 million
“Meanwhile the Authority is liaising with the Advocates on record for parties to agree on the amount that is not disputed for purposes of payment by KCAA. The matter is being handled by Walker Kontos Advocates on behalf of KCAA,” it states.
Following the win at the High Court and an initial award of Sh154.8 million to 40 of the 68 employees, the former workers appealed the decision and sought an additional Sh103.8 million.
This was after the court of appeal dismissed KCAA’s appeal on the 2014 High Court decision declaring the former workers winners.
“The application for review sought an additional Sh103,835,080. To this extent, the Authority has made a provision of Sh258, 676,220 in its financial statements for the period ended 30th June 2021. KCAA made a review application to review the Court orders to run up to the date when judgment was delivered,” the Authority notes.
KCAA faces problems with its current and former workers, with others also in the courts with disputes at various stages, the audit notes.
“The Authority is facing employee-related disputes which are at different stages of litigation. The outcome of these disputes may occasion potential liability to the Authority,” it notes.
