Ex-KPMG boss demands Sh150m over breach of contract

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The High Court has allowed a State agency to seize 12 vehicles suspected to be proceeds of crime. PHOTO | SHUTTERSTOCK

A former KPMG East Africa boss has sued the international tax and audit advisory firm seeking more than Sh150 million for alleged breach of contract and what he terms constructive dismissal last December.

The former head of deals & transactions in East Africa, Nigel Smith, quit his job in December, saying that the actions of the audit firm amounted to constructive dismissal.

In the case filed before the Employment and Labour court, Mr Smith wants the court to find that the audit firm was unfair to him and award him terminal dues amounting to $1,012,722.

“The respondent's conduct was a breach going to the root of the contract of employment and showed that it no longer intended to be bound by the essential terms of the contract, constraining the claimant to treat himself as discharged from any further performance and terminate his employment,” he says.

He is seeking $1,012,722 which includes legitimate expectation of salary up to 65 years of $732,476, car allowance ($23,040), pension ($37,434), bonus ($125,025) among other allowances. Mr Smith was employed as a director, the deal advisory unit in 2015 earning a consolidated annual salary of $240,000, until retirement at 65 years.

He says, through his lawyer Donald Kipkorir, that he was entitled to bonuses based on his own performance, that of his business unit and overall firm performance. According to the lawyer, Mr Smith demonstrated exemplary performance in his duties which was acknowledged by his partners and saw his salary reviewed each year.

The last review, he said, was adjusted to $23,615 per month thus earning him $283,387 per year.


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