Re-appointment of KLB boss unlawful, PSC tells Labour court

Since the statute establishing KLB is silent on MD’s term limit, PSC states the term prescribed under the Mwongozo Code applies.

“The code states that MDs and CEOs shall be in office for a three-year term, renewable once, subject to performance evaluated by the board,” PSC submits.

According to Mulati, as per the code, where the law provides that a contract is renewed once, it means that all the terms under the contract including the contract will remain constant.

“PSC and State Corporation Advisory Committee issued the code of governance for state corporations, in order to harmonize or explain instances where the law fails to provide for certain issues including term limits for MDs,” he submits.

Mulati adds that on July 17, 2024, the commission wrote to the CS Education and KLB board, informing them of the illegality and directed them to take corrective measures.

PSC notes that Lomaria was appointed for a term of three years effective September 1, 2016. The contract was then renewed for five years, effective September 1, 2019.

“Our mandate is to investigate, monitor and evaluate the organization, administration and personnel practices of the Public Service. PSC also issues guidelines and policies which apply to state corporations,” deposes Mulati.

Wanjiru sued Lomaria and KLB. She listed PSC as the interested party.  She submits that Lomaria is illegally in office since his term legally ended on August 31, 2022.

However, PSC submits that it reviewed and approved the staff establishment, organizational structure and grading structure and communicated the same through a letter dated May 21, 2024.

Lomaria in his defence told the court that the new structure was approved by PSC and contrary claims are untrue.