A dispute over official travel and per diem claims involving a senior Kenya Power manager’s daughter led to the dismissal of a long-serving employee, a decision that has seen her awarded Sh3.2 million compensation for unfair sacking.
The Employment and Labour Relations Court in Nakuru ruled that Kenya Power unfairly terminated Catherine Mwangi, an ICT manager with 37 years of service, following a disciplinary process deemed procedurally and substantively flawed.
Ms Mwangi, who joined Kenya Power in 1983 as a technician apprentice, rose through the ranks to become Functional Head for ICT in the North Rift before transferring to the Central Rift as Regional ICT Head.
Her role covered seven counties with extensive fibre infrastructure, requiring frequent emergency travel. Scheduled to retire in 2024 at age 60, she was dismissed in February 2021 over allegations of misusing a company vehicle and irregularly approving per diem and mileage claims.
Ms Mwangi sued, alleging her termination stemmed from nepotism after she refused to approve undeserved travel requests for a top manager’s daughter.
Court records indicate the dispute began in 2020 when she faced increasing pressure over travel approvals. She testified that the manager’s daughter repeatedly demanded inclusion in official trips and reacted angrily when denied allowances, escalating to hostility and threats.
However, Kenya Power denied any improper influence, insisting her dismissal was purely disciplinary.
The company cited a forensic audit that allegedly uncovered irregularities in vehicle use, work ticket approvals, and per diem claims.
The audit accused Ms Mwangi of authorising fictitious claims, improperly delegating approvals, and irregularly claiming Sh75,600 in per diems and Sh18,029 for mileage while using a company car.
On January 4, 2021, she received a notice to show cause and was given 72 hours to respond. Ms Mwangi stated she was never provided the audit report or supporting documents.
Despite this, she submitted a written defence explaining that disputed trips involved her personal vehicle, while the company car was used by technicians transporting equipment.
A disciplinary hearing on January 26, 2021, was described as tense and disorganised, conducted without key documents.
“The hearing was hostile and unfair, resembling a shouting match, with the outcome seemingly predetermined,” she told the court, claiming she was denied a fair chance to defend herself.
She was dismissed on February 2, 2021, with the letter repeating allegations but offering no explanation for rejecting her defence. Her appeal on February 24 received a delayed response, ultimately upholding the dismissal.
In court, Kenya Power maintained it followed due process under the Employment Act, arguing that Ms Mwangi, as a senior officer, bore responsibility for transport management and provided unsatisfactory explanations.
However, the court identified significant gaps in Kenya Power’s case, ruling violations of Article 47 of the Constitution, the Fair Administrative Action Act, and the Employment Act.
The internal auditor admitted that Ms Mwangi was not given the audit report before the hearing and acknowledged that weaknesses were “largely systemic issues within the transport department.”
The auditor also conceded that no driver testified about alleged vehicle misuse and could not confirm fictitious payments.
The human resources officer admitted that the transport policy cited was circulated after the audit and lacked documentary proof of fictitious claims.
The court noted confusion within Kenya Power over transport controls, with management witnesses unclear on approval authority.
"There was no clear strategy on the transport policy and approval of work tickets. The respondent witness, the internal auditor, was not crystal clear who was to sign the work ticket and also the Human Resource Manager was not certain about the applicability of the transport policy," the court observed.
The judge ruled Kenya Power failed to prove termination was justified, violating Sections 41, 43, and 45 of the Employment Act.
The court emphasised that disciplinary fairness requires both valid reasons and fair procedure. It faulted Kenya Power for failing to supply the audit report, denying the employee a meaningful opportunity to defend herself.
While no direct evidence proved nepotism influenced dismissal, the court found allegations unproven and the termination process fundamentally unfair.
Ms Mwangi was awarded one month’s salary in lieu of notice and 12 months’ compensation totalling Sh3.2 million, plus costs and 14 percent interest.
