The Kenya Meat Commission (KMC) has suffered a blow after a judge declined to suspend a judgment directing the State corporation to pay its former chief executive James Kimonye more than Sh11 million for illegal sacking in 2007.
Justice Jacob Gakeri lifted the temporary order granted to KMC last year paving the way for the former CEO to demand the money.
KMC wanted the decision suspended as it pursues an appeal directing it to pay Mr Kimonye for the illegal sacking.
The Employment and Labour Relations Court judge said KMC did not provide security or demonstrate good faith as it challenges the decision at the Court of Appeal.
"For the foregoing reasons, it is the finding of the court that the applicant has not satisfied the last requirement for the grant of stay," said the judge.
Mr Kimonye was sacked in 2007 a few months into his three-year contract on allegations of gross misconduct. He was accused of engaging KMC in unprofitable ventures leading to the loss of millions.
Justice Gakeri in November 2021 ruled that Mr Kimonye was unfairly sacked and awarded him Sh10.9 million.
The judge also dismissed a counter-claim of Sh6 million sought by KMC. The judge later temporarily suspended the decision pending the filing of the application.
KMC argued that it will suffer irreparable damage if the decision is not suspended as it handles public funds. The court heard that KMC might not recover the money from Mr Kimonye if the appeal succeeds.
"This is a public institution dealing with public funds and the Decree holder (Kimonye) has no known assets or means to refund the decretal sum if the appeal was successful," KMC submitted.
KMC says Mr Kimonye’s sacking was procedural and fair and there was no need of compensating him.
He was accused of paying money to companies, which he failed to reimburse and authorising payments to contractors engaged in the construction of a senior staff office at Athi River without authority leading to a loss of Sh1.3 million.
The court also heard that Mr Kimonye committed KMC to unprofitable business ventures of shipping products to South Sudan leading to a loss of Sh1.9 million.
But Justice Gakeri had ruled that the allegations of misconduct, contained in the sacking letter were too general for a termination notice and no other communication was sent to the CEO.
