The Kenya Civil Aviation Authority (KCAA) is on the verge of disbursing Sh258 million to former employees who have cornered the authority over wrongful dismissal by its predecessor, the Directorate of Civil Aviation, 22 years ago.
In its annual report for the 2022/23 financial year, KCAA said it has made provisions of Sh258.7 million since 2021 to pay the 68 former employees after the courts ruled in their favour over dismissal from public service and malicious prosecution.
“On August 14, 2020, KCAA was served with a preliminary decree of Sh152,071,216 and a final decree of Sh28,229,748 for the wrongful dismissal and unlawful arrest of the former DCA employees.
The amounts are salary arrears since April 18, 2002,” the KCAA said in its report.
However, the authority said that the "major long-standing court case" that continues to hinder its compliance with statutory requirements remains unresolved after errors were made by the court in assessing the dues, "and the same is pending determination by the court".
“Meanwhile, the Authority is liaising with the advocates on record for parties to agree on the amount that is not disputed for purposes of payment by KCAA.
The matter is being handled by Walker Kontos Advocates on behalf of KCAA,” it stated.
Following the High Court win and an initial award of Sh154.8 million to 40 of the 68 workers, the former workers appealed the decision and sought an additional Sh103.8 million.
This was after the Court of Appeal dismissed KCAA's appeal against the 2014 High Court decision declaring the former workers winners.
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“The application for review sought an additional Sh103,835,080. To this extent, the Authority has made a provision of Sh258, 676,220 in its financial statements for the period ended June 30, 2021.
KCAA made an application to review the Court orders to run up to the date when judgment was delivered,” the Authority said.
KCAA is facing issues with its current and former employees, with others also in court with disputes at various stages, the audit said.
“The outcome of these disputes may occasion potential liability to the Authority,” it noted.