Technical University of Mombasa, former VC row over Sh8 million tax

Former Technical University of Mombasa vice chancellor Josephat Mwatela

MOMBASA, KENYA: Technical University of Mombasa (TUM) has gone to court to block former vice chancellor Josephat Mwatela from auctioning its eight vehicles to recover Sh8.4 million deducted by the institution from his original compensation of Sh28 million for wrong termination.

Mwatela began the process of attaching the vehicles valued at Sh7.3 million should the university fail to pay him the full sum as ordered by the court last year.

The parties recorded consent in the Labour and Industrial Court, and TUM was meant to pay Mwatela Sh28 million.

The figure was arrived at after months of negotiations following a court ruling that awarded him Sh38 million, including costs for the suit, on January 27, 2017.

The university agreed to pay Sh7 million in four installments starting January 15, 2018, at three-month intervals.

But in the first installment, the university deposited Sh4.9 million and deducted Sh2.1 million to be remitted to the Kenya Revenue Authority as tax.

Mwatela subsequently engaged Moran Auctioneers, who secured a warrant for attachment of the vehicles.

According to TUM legal officer Serah Okumu, the university deducted 30 per cent from the Sh7 million as Pay As You Earn.