Former Kenyatta University vice-chancellor Olive Mugenda suffered a setback on Thursday when the Labour Court stopped the implementation of an order directing the university to pay her all her final dues.
Employment and Labour Relations Court judge Hellen Wasilwa suspended the orders a different Labour Court judge had issued last month, after they were challenged by activist Okiya Omtatah.
Mr Omtatah argues that the lucrative retirement package alleged to amount to Sh100 million, is outrageous, illegal and amounts to a violation of the constitution, which requires transparency, and accountability, in the utilization of public resources.
“The controversial retirement package is contrary to Government policy contained in a circular dated May 14, 2015, where the government clearly prohibits retiring CEOs from retaining the perks for their former administrative positions,” Mr Omtatah.
He said that since the controversial retirement package is not in Prof Mugenda’s employment contract, it is irregular as it is tantamount to varying her terms of service towards the end of her tenure.
He was directed to serve Kenyatta University, Cabinet Secretary Education, Prof Mugenda and the Attorney General with the court papers. The case will be heard on October 25.