Principal Fired by TSC Weeks Before Retirement Wins Millions

A Nairobi court has awarded a former high school principal about Ksh1.9 million after a ruling that her dismissal weeks before retirement was unlawful.

Sarah Muraa Muthoni was dismissed by the Teachers Service Commission (TSC) on May 18, 2021, only 27 days before her retirement date, after serving as a teacher for 35 years.

However, the Employment and Labour Relations Court found that the termination was unfair and ordered the commission to pay her accumulated salaries, compensation, and all pension dues.

“Pension already earned is a right and cannot be taken away from an employee for whatever reason,” ruled Justice Hellen Wasilwa.

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How the Career of the Principal was Cut Short

Muthoni began her career on June 19, 1986, when she was hired as a graduate teacher on permanent and pensionable terms.

Over the years, she rose through the ranks to become Principal of Ruthimitu Girls Secondary School, earning a monthly salary of Ksh163,644.

She told the court that she had a dignified career until the abrupt dismissal weeks before her scheduled retirement on June 14, 2021.

“The Respondent, without an explanation of such a heavy penalty and with little evidence to support the allegations, terminated her 35-year career, 8 days before her retirement,” the court noted.

Muthoni claimed she was unfairly targeted.

Additionally, she told the court that her long record of exemplary service made her a subject of envy and victimization.

Further, she said that there were quiet measures being undertaken to remove her from her position before retirement.

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Allegations Made by TSC

The TSC had accused Muthoni of financial misconduct, including charging unauthorized levies for a school bus project and awarding tenders to her own company, Kawisa Suppliers.

Although the claimant admitted registering Kawisa Suppliers, she argued that the company had been transferred to another party.

Also, she maintained that responsibility for school accounts lay with the Board of Management and Parents and Teachers Association, who were not investigated or called as witnesses.

The court found that the commission failed to produce sufficient evidence to justify dismissal.

It also criticized the imposition of a Ksh1.57 million surcharge on Muthoni in her dismissal letter, noting that the charge was never presented during her disciplinary hearing.

“The surcharge was irregular and null and void as it was not a charge presented to her during the disciplinary hearing,” Justice Wasilwa ruled.

Court Awards her Millions

After reviewing the case, the court ruled that the termination was unlawful. 

Justice Wasilwa noted that the TSC had failed to prove its case and that due process was not followed in dismissing the principal.

“It is the finding of this court that the claimant, having been subjected to a wrongly constituted disciplinary panel, the proceedings therein are void ab initio and therefore her termination null and void,” the judge held.

The ruling also indicated that retirement rights are sacred. 

The court declared that Muthoni was entitled to her full pension and terminal dues despite the commission’s attempt to dismiss her before she retired.

Consequently, Muthoni was awarded a total of Ksh1,881,906, subject to statutory deductions, broken down as follows:

• Accumulated Salaries: Ksh736,398, covering the period between her interdiction and dismissal.
• Unpaid Salary: Ksh163,644 for May and June 2021.
• Compensation for Unlawful Termination: Ksh981,864, equivalent to six months’ salary.

In addition to the monetary award, the court granted further remedies, including full payment of pension and terminal dues, a declaration concerning unremitted pension contributions during interdiction.

Also, the court granted her costs of the suit plus interest at court rates from the date of judgment.

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