The Agricultural Finance Corporation (AFC) has been ordered to pay its former senior legal officer Sh3.3 million for unlawful termination over alleged negligence in handling court cases and failing to uphold his professional duties.
The Employment and Labour Relations Court ruled that although AFC had valid reasons to dismiss Eurry Mabonga, the termination was procedurally flawed because the employer withheld evidence.
The court found that AFC breached Mr Mabonga’s rights by denying him access to critical documents before a disciplinary hearing, undermining his ability to defend himself.
“The disciplinary process was a mere formality,” the court ruled, declaring the termination unlawful under Section 41 of the Employment Act.
Mr Mabonga, who joined AFC in April 2013, argued that his dismissal in January 2025 was unfair after years of exemplary service, including saving the corporation Sh3.5 billion through successful litigation.
He accused AFC of sidelining him by appointing junior staff to senior positions and suspending him without proper disciplinary procedures.
AFC, however, defended its decision, alleging that he neglected duties, mishandled cases leading to financial losses, and operated a private law firm – Mabonga & Co. Advocates –from July 2020 while still employed, constituting a conflict of interest under the Public Officer Ethics Act.
A witness testified that an analysis of Mr Mabonga’s confiscated work laptop reportedly uncovered unauthorised professional undertakings for third parties, including those related to loan facilities and a land transaction. Mr Mabonga denied the allegations.
But the court dismissed AFC’s conflict of interest claims as irrelevant since they were not included in the termination letter.
“This allegation did not form part of the stated grounds for the claimant’s termination. According to the respondent, this discovery arose at the time the claimant was placed on suspension,” the judge said.
“It therefore remains unclear why the respondent did not amend the charges to reflect this allegation.”
The court further faulted AFC’s disciplinary process, noting the disciplinary committee was biased. An IT officer who examined Mr Mabonga’s laptop improperly sat on the panel, breaching AFC’s HR policy requiring impartiality. Additionally, Mr Mabonga was denied access to key documents before his hearing.
“The respondent failed to uphold fairness by withholding evidence and allowing an investigator to sit in judgment,” the judge said.
However, the court acknowledged the employee’s alleged negligence in multiple cases, including failure to prosecute debt recovery matters and absence from hearings, which cost AFC over Sh1.1 million. It found that he did not act with utmost diligence in handling the cases cited by the employer.
“When assessed cumulatively, and taking into account the overall effect of the claimant’s omissions, the court is satisfied that the respondent was justified in concluding that there existed a justifiable cause for terminating the claimant’s employment,” the judge said.
The court awarded Mr Mabonga Sh431,829 (three months’ salary) as compensatory damages, Sh215,914 for accrued leave days, and Sh10,000 as a long-service award.
He was also granted Sh35,000 for unpaid leave allowances (2020–2024) and Sh2.64 million for non-practice allowance up to July 2020, when he registered his law firm.
In the public service, a non-practice allowance is payable to professionals who relinquish private practice to serve exclusively in the public sector.
His claims for salary disparities and meal allowances were dismissed for lack of evidence.
Editor's Note: This story has been revised. In the earlier version, we implied that Eurry Mabonga's employment at AFC was terminated for his registration and operation of a private law firm. It has since been brought to our attention that the matter of private practice arose during the court hearing, but it was not one of the reasons the judge used to determine the suit.
Unlock a world of exclusive content today!Unlock a world of exclusive content today!
