KRA to pay sacked employee Sh11m

The Kenya Revenue Authority has been ordered to pay a former senior employee more than Sh11 million for unlawful dismissal.

The taxman will also pay Mr Mengenya Salim Murgani, a former assistant commissioner, Sh1 million in damages.

Gross salary

The parastatal is expected to pay Mr Murgani his gross monthly salary of Sh125,081 from when he was dismissed on March 9, 2001, up to September 22, 2008, an amount of more than Sh11 million excluding interest.

Also to be paid to the former senior assistant commissioner are his leave allowance and pension from when he was sacked up to Monday.

Mr Justice Jacktone Boma Ojwang further ordered that all the payments be made with interest at court rates.

The judge said KRA terminated Mr Murgani’s employment with scant regard for the rules of natural justice.

Mr Murgani had filed a suit challenging his dismissal as unlawful.

The tax collector sent Mr Murgani packing after he was accused of failing to detect a scandal in which the Government was allegedly defrauded of millions of shillings through evasion of duty on goods imported by the Schools Equipment Procurement Unit (SEPU).

The former assistant commissioner also claimed that he was sacked without the mandatory six months’ notice stipulated in his contract.

Mr Murgani’s troubles started on April 19, 2000, when he was suspended for allegedly violating the organisation’s code of conduct.

Two weeks later, KRA lifted the suspension and he was ordered to resume his duties, the court heard.

Eight months later, KRA yet again sent Mr Murgani on suspension.

Two months later his contract was terminated.

Tax evasion

Mr Murgani had told the court that the tax evasion case by SEPU did not justify the KRA’s termination of his employment.

He said the court that his findings on the tax evasion issue were subsequently confirmed when those charged in connection with the alleged fraud were acquitted by a court.

KRA, however, denied that Mr Murgani’s employment contract stipulated that there was provision for six months’ notice prior to termination of service.

It denied dismissing Mr Murgani unlawfully and said it had taken the appropriate disciplinary action against him.