KRA to pay ex-manager Sh3m for unfair dismissal over vehicle auction

The High Court in Mombasa has ordered Kenya Revenue Authority (KRA) to pay Sh3 million to a manager unfairly terminated for auctioning a Volkswagen Passat in 2007 without Kenya Bureau of Standards (KEBS) certificate.

Justice Kibera Ocharo ordered KRA to compensate Collins Bosire after determining that his termination was procedurally and substantively unfair.

“In the upshot, judgment is hereby entered for the claimant (Bosire) that his dismissal from employment was both procedurally and substantively unfair. Compensation for unfair and wrongful dismissal, 12 months’ gross salary, sh.3 million,” said Justice Ocharo.

Bosire had served at KRA for 15 years, rising through the ranks from a graduate management trainee to warehouse keeper, acting manager in the Customs and Border Control Department, Revenue Officer, Supervisor, Assistant Manager at the Customs Warehouse, Head of Container Freight Stations, and later Manager in charge of Enforcement at the Port of Mombasa.

Bosire was accused of listing for auction a Volkswagen Passat without KEBS certificate in 2016 while he served as a warehouse keeper.

The vehicle was purchased by Kioko Muoko for Sh1.1 million but could not be registered with the National Transport and Safety Authority (NTSA) because it did not have the required KEBS certification.

Muoko subsequently sued KRA, leading to a consent agreement under which the vehicle was returned and the purchase price refunded.

Bosire, however, argued that his role was limited to preparing a list of motor vehicles that had overstayed in the warehouse. He said the final list of vehicles for auction was compiled by the Customs Warehouse Manager together with the appointed auctioneer.

However, Bosire said that his role was limited to preparing a list of all motor vehicles that had overstayed in the warehouse and thereafter, the Manager Customs warehouse and the appointed Auctioneer would compile a final list of vehicles for a particular auction.

He told the court that KRA proceeded with disciplinary action  against him despite an internal recommendation by the Acting Commissioner for Customs and Border Control which indicated that he was not culpable.

Bosire further testified that the auction in question was the first he had handled and that he subsequently organised 16 other auctions without any complaints being raised.

He also pointed to his strong performance record, noting that he was recognised in 2017 as the best-performing manager in revenue collection and received a certificate in acknowledgement of the achievement. In 2018, he said, his performance appraisal rated him as excellent.

According to Bosire, those achievements and promotions contradicted KRA's claim that he had been negligent in the execution of his duties.

He told the court that he holds a Master's degree in Customs Administration from Germany and that very few KRA officers possess similar qualifications, giving him strong prospects for further career advancement.

Bosire also alleged that his interdiction and eventual dismissal were influenced by discrimination based on his ethnicity and region of origin.

At the time of his dismissal, he was 41 years old and earning a gross monthly salary of Sh268,000. He argued that the dismissal denied him future promotions and earnings he expected to attain through advancement to positions such as Manager, Chief Manager, Deputy Commissioner and Commissioner.

In his suit, he sought Sh153.3 million in damages for unfair termination and loss of future earnings.

KRA defended the dismissal, maintaining that the disciplinary process was lawful, fair and conducted in accordance with established procedures.

KRA Human Resource Assistant Manager Jackson Kimeu said Bosire negligently included the Volkswagen Passat in an auction list without obtaining the required clearance from the KEBS.

However, KRA’s officer in charge of Customs Warehouse Kilindini, Paul Boiyo admitted that the responsibility of ensuring that all auctioned cars had a KEBS certificate lied with the warehouse manager and not Bosire.