The Education ministry will start scrutinising employment contracts to ensure they conform to existing legal framework and remove clauses that expose the institutions to huge terminal payouts.
Last year, Prof George Magoha won a court battle that not only guaranteed his negotiated exit payout, but also allowed him to continue earning at the same level as he did during his time as the University of Nairobi VC should he take up a teaching job at the institution.
The Education ministry has signalled its intention to reduce hefty send-off packages that vice-chancellors (VCs) and heads of other sector agencies pocket when they exit service.
Education Cabinet Secretary Amina Mohamed said her office will start scrutinising employment contracts to ensure they conform to existing legal framework and remove clauses that expose the institutions to huge terminal payouts.
She has since directed governing organs of public universities and agencies to submit to her office copies of the employment contracts and terms of service of their chief executives and other top managers.
“These contracts contain clauses that are irregular. Such clauses commit public resources by ensuring employees retain perks long after they have completed their terms,” said Ms Mohamed in a circular dated December 5, 2018 and addressed to Ministry of Education officials, all chairpersons of university councils, boards and commissions and all CEOs of state corporations in the ministry.
Settlement of exit perks of a number of VCs have in the past triggered vicious court battles.
Last year, Prof George Magoha won a court battle that not only guaranteed his negotiated exit payout, but also allowed him to continue earning at the same level as he did during his time as the University of Nairobi VC should he take up a teaching job at the institution.
In 2017, Technical University of Mombasa agreed to pay its former VC Josephat Mwatela Sh28 million in an out of court compensation for wrongful dismissal.
And shortly after she left Kenyatta University in 2016, having served as its VC for 10 years, Prof Olive Mugenda sued the institution’s council for a Sh100 million send-off package.
Ms Mohamed wants the institutions to adhere to a guideline issued by head of public service Joseph Kinyua in May 2015.
The letter is copied to Public Service Commission Secretary Alice Otwala and Secretary of State Corporation Advisory Committee Secretary Jane Mugambi.
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