Ezekiel Mutua Faces KSh27.6M Repayment Order for Illegal KFCB Salary Increase

The State Corporations Appeal Tribunal delivered a landmark ruling, ordering Ezekiel Mutua, the former Chief Executive Officer of the Kenya Film Classification Board (KFCB), to repay KSh27,612,360 in public funds he unlawfully received through an unauthorized salary and allowance increase during his tenure. The tribunal, chaired by Aggrey Lucas Kidiavai, upheld a surcharge issued by the Inspectorate of State Corporations, concluding that Mutua’s salary hike from KSh348,840 to KSh1,115,850 per month, implemented in 2019, violated public service protocols and constituted a misuse of taxpayer money. The decision, which dismissed Mutua’s appeal to retain the funds, has reignited debates about accountability in Kenya’s state corporations, with implications for governance and public trust in institutions managing public resources.

Mutua, who served as KFCB CEO from October 2015 to October 2021, came under scrutiny for the controversial salary adjustment that took effect during his second term, starting in October 2018. The tribunal found that the KFCB board, of which Mutua was a member, approved the near-tripling of his monthly salary without the mandatory oversight of the Salaries and Remuneration Commission (SRC) or approval from the Cabinet Secretary for Sports and Heritage. The SRC had capped the KFCB CEO’s salary at KSh480,000, inclusive of allowances, making the increase to KSh1,115,850 a clear breach of legal guidelines. “The increment was irregular, unlawful, and did not comply with Article 230 of the Constitution,” the tribunal stated, emphasizing that the board’s actions disregarded explicit ministerial instructions to suspend the hike.

The irregular salary adjustment was first flagged by Auditor General Nancy Gathungu in a 2020 report, which highlighted KSh15.3 million in excess payments to Mutua over the 2018-2019 and 2019-2020 financial years. The Ethics and Anti-Corruption Commission (EACC) later intensified the probe, filing a lawsuit in March 2025 to recover KSh22.7 million, citing additional unauthorized entertainment allowances of KSh100,000 per month since 2016. The tribunal’s ruling, however, focused on the KSh27,612,360 surcharge issued by the Inspectorate of State Corporations on October 8, 2024, which Mutua challenged through an appeal. “The Inspector General’s decision to surcharge was justified,” the tribunal ruled, dismissing Mutua’s argument that the board’s approval legitimized the increment. “The board acted contrary to the law, and the appellant benefited from this illegality.”

The controversy traces back to the events leading to Mutua’s second term. As his initial three-year contract neared its end in October 2018, Mutua sought renewal through a letter from the KFCB board chairman, dated May 14, 2018, to the Cabinet Secretary for Sports and Heritage. The Cabinet Secretary responded on May 29, 2018, explicitly stating that he did not intend to renew Mutua’s contract. Despite this, the board, in a letter dated June 7, 2018, proceeded to renew Mutua’s contract for another three years and implemented the salary hike, backdated to November 2018. “This defiance of ministerial directive was a gross abuse of power,” said a legal analyst in Nairobi, commenting on the tribunal’s findings. The board’s decision not only violated the State Corporations Act but also ignored the roles of the SRC and the State Corporations Advisory Committee (SCAC) in regulating executive pay.

Mutua’s tenure at KFCB was marked by high-profile controversies, earning him the nickname “moral police” for his strict regulation of content deemed inappropriate, including bans on films and music addressing issues like homosexuality. His leadership saw clashes with artists and filmmakers, notably the 2018 ban on Wanuri Kahiu’s film *Rafiki*, which led to a legal battle over freedom of expression. While Mutua defended his record, claiming the KFCB over-performed in its targets, his financial dealings drew increasing scrutiny. “I led the KFCB to surpass its goals,” Mutua said in a 2021 statement, responding to his dismissal. However, the tribunal’s ruling paints a different picture, accusing him of unjustly enriching himself at the expense of public funds.

The tribunal’s decision has sparked mixed reactions among Kenyans. On X, some users expressed support for the ruling, with one posting, “Finally, accountability for those who misuse public funds. Mutua must pay back every shilling.” Others, however, questioned the selective focus on Mutua, pointing to systemic issues in state corporations. “Why only him? The whole board approved this,” wrote a user from Mombasa, reflecting sentiments that the surcharge should extend to other board members. Indeed, the tribunal also upheld a KSh2.8 million surcharge against a former KFCB board member, Nehemiah Kipkoech, for his role in approving the increment, signaling broader accountability measures.

The EACC’s ongoing lawsuit at the Anti-Corruption and Economic Crimes Court implicates 12 former KFCB board members, including Jackson Kosgei, Khadija Omar Rama, and Ernest Kerich, for colluding in the illegal pay raise. “The board failed to take reasonable measures to prevent loss of public funds,” the EACC argued, seeking to recover funds from all involved parties. The tribunal’s ruling noted that the board’s actions were particularly egregious given the Cabinet Secretary’s directive to recover any overpayments, which was ignored. “This was not a mistake but a deliberate act,” said a governance expert in Nairobi, emphasizing the need for stricter oversight of state corporations.

Mutua, now the CEO of the Music Copyright Society of Kenya (MCSK), has 30 days to apply for a review or lodge an appeal against the tribunal’s decision. He has remained silent on the ruling, a departure from his typically vocal presence on social media, where he often shares Bible verses and defends his public service record. “Mutua’s silence speaks volumes,” said a commentator on X, speculating that he may pursue further legal recourse. The tribunal dismissed his argument that the Inspector General failed to prove a loss to the KFCB, stating that the unauthorized payments inherently constituted a misuse of public resources.

The ruling comes at a time of heightened scrutiny of Kenya’s state corporations, with the government grappling with a KSh11.36 trillion public debt and public demands for accountability. The KFCB, tasked with regulating film and broadcast content, has faced criticism for overstepping its mandate under Mutua’s leadership, with artists accusing him of stifling creativity. “This repayment order is a step toward justice, but it’s also a reminder of how unchecked power can erode public trust,” said a filmmaker in Nairobi, reflecting on Mutua’s legacy. The KFCB’s current leadership, under acting CEO Christopher Wambua, has pledged to strengthen compliance with financial regulations.

The financial burden of the repayment could have significant implications for Mutua, whose tenure at MCSK has also been contentious, with artists accusing him of mismanaging royalties. The EACC’s probe into his KFCB earnings may extend to other allowances, such as the KSh100,000 monthly entertainment allowance deemed illegal. “This case sets a precedent for holding public officials accountable,” said a legal scholar at the University of Nairobi. “It’s a warning to those who exploit their positions for personal gain.”

As Kenya navigates economic challenges and public unrest, exemplified by the recent Saba Saba protests, the tribunal’s ruling underscores the urgency of reforming state corporations. The government’s efforts to recover misappropriated funds align with broader initiatives to curb corruption, though critics argue that systemic issues, such as weak oversight, persist. For now, Mutua’s repayment order stands as a high-profile example of accountability, with the public watching closely to see if the funds will be recovered and whether other officials will face similar consequences.