Last Updated on March 6, 2026 by carolyne juma
Court Orders KRA to Pay Patrick Mugambi Sh9.5M for Unfair Dismissal
Friday, March 7, 2026 | 02:20 PM
The Employment and Labour Relations Court has ordered the Kenya Revenue Authority (KRA) to pay a former employee more than Sh9.5 million after finding that his dismissal was unlawful.
The court ruled that the tax agency violated the constitutional rights of Patrick Mugambi, who had served as an Assistant Manager in Integrity Testing for more than 18 years.
Court Finds Termination Unlawful
In her judgment, Justice Wasilwa found that the manner in which KRA handled Mugambi’s dismissal violated his constitutional rights.
“It is my finding that Mugambi’s right to fair labour practice and fair administrative action were compromised in the manner KRA handled Mugambi,” the judge ruled.
The court noted that the employer failed to demonstrate valid reasons for the termination or follow proper disciplinary procedures.
Violation of Constitutional Rights
Justice Wasilwa stated that the agency breached Mugambi’s rights under Article 41 and Article 47 of the Constitution, which guarantee fair labour practices and fair administrative action.
The judge emphasized that both valid reasons and procedural fairness must be established before an employee is dismissed.
“It is however my finding that both these are lacking in this case and it is therefore my finding that Mugambi’s termination was unfair and unjustified,” the court ruled.
read:Claudio Visco Assumes Office as International Bar Association President
Issues With Disciplinary Process
The court noted several irregularities in how the case was handled.
Mugambi was initially interdicted without being given reasons, despite requesting clarification from the authority.
He was later served with a notice to show cause, but when he requested documents needed to respond to the allegations, KRA declined the request citing confidentiality.
The court held that the refusal violated his rights under the Fair Administrative Action Act because it denied him the opportunity to defend himself adequately.
Justice Wasilwa also observed that KRA failed to present the disciplinary hearing proceedings before the court.
“This court is being asked to adjudicate on a fair process without the said evidence,” the judge said.
Career and Performance Record
Mugambi told the court that throughout his employment he consistently received excellent or very good performance ratings.
He said his challenges began on January 8, 2024, when he was reassigned by Dr. Isaiah Nyaga, KRA’s Chief Manager for Internal Affairs Investigations.
The reassignment required him to move from Team A to Team B, with instructions to report by January 16, 2024.
Mugambi responded immediately, explaining that he could not comply because the reporting timeline for his previous assignment had almost elapsed.
Grievance and Transfer
After resuming duty on January 17, 2024, Mugambi filed a grievance memo the following day.
The memo raised concerns about working conditions and cited provisions under KRA Human Resource Policies and the Public Officer Ethics Act.
He claimed that shortly after raising the grievance, a forgery allegation linked to a 2022 investigation report was revived.
He argued that the investigation had already been concluded and implemented in 2022, making the revival malicious.
Transfer to Isiolo
In March 2024, Mugambi was transferred from the Internal Affairs Investigations Unit in Nairobi to the Intelligence Management Division in Isiolo, a designated hardship area.
He reported to the station on March 26, 2024.
The court heard that he considered the transfer punitive and unrelated to his work performance.
Just 14 days after reporting to Isiolo, Mugambi was interdicted on April 19, 2024, pending investigations.
Court Awards Damages
The court found that Mugambi’s interdiction and eventual dismissal were handled unfairly.
Justice Wasilwa awarded him:
-
Sh5 million in general damages for violation of constitutional rights
-
Compensation equivalent to seven months’ salary for unfair termination
The total award exceeded Sh9.5 million.
The ruling reinforces the obligation of employers to follow lawful disciplinary procedures when dealing with employees.
Kenya Court News Today – Live High Court & DPP Updates click here 👉 /kenya-court-news-today