KPMG ordered to pay ex-boss Sh379m for illegal sack

Richard Boro
RichardBoro
Photo credit: File | Nation Media Group

What you need to know:

  • Justice Francis Tuiyott upheld the decision of an arbitrator awarding the millions of shillings to Richard Boro Ndung’u, saying his compulsory retirement was unlawful.
  • The Sh379.03 million award is, however, a reduction from the Sh504.8 million (at the current exchange rate) earlier granted to Mr Ndung’u in 2018 by the arbitrator.

Audit firm KPMG has been dealt a blow after the High Court ordered it to pay its ex-boss Sh379.03 million for unlawful sacking in 2017.

Justice Francis Tuiyott upheld the decision of an arbitrator awarding the millions of shillings to Richard Boro Ndung’u, saying his compulsory retirement was unlawful.

The Sh379.03 million award is, however, a reduction from the Sh504.8 million (at the current exchange rate) earlier granted to Mr Ndung’u in 2018 by the arbitrator, John Ohaga, which had prompted KPMG to seek redress in the High Court.

“I find and hold that the claimant has suffered loss and damage as a result of the conduct of the respondents towards him since the commencement of investigations against him from October 3, 2016 culminating in his purported compulsory retirement on January 13,2017 and the announcement," the judge said.

Justice Tuiyott knocked out Sh35.5 million on account of profit initially awarded to Mr Ndung’u by the arbitrator. The judge also reduced special damages by Sh661,430 and aggravated damages of Sh2.7 million.

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