The Industrial Relations Court (IRC) has awarded K524.8 million to Competition and Fair Trading Commission (CFTC) former employee Rex Nyahoda for unfair dismissal and violation of both contractual and statutory labour protections.
The compensation follows the court’s assessment after it earlier determined on liability holding that CFTC unfairly and unprocedurally terminated Nyahoda’s contract in July 2023 while serving as director of competition for the firm.
The dispute centred on whether Nyahoda’s fixed term contract, which expired in February 2023, had been validly renewed by the commission’s board resolution of December 12 2022.
While Nyahoda maintained that the renewal of his contract was lawfully effected, the commission argued that no renewal occurred and that Nyahoda was merely engaged on a month-to-month basis, pending recruitment.
However, in its determination the IRC found that the board’s resolution amounted to a valid renewal of Nyahoda’s contract to run from August 1 2023 to February 28 2026.
The assessment of his compensation followed Section 63(4) of the Employment Act, requiring a “just and equitable” award based on actual losses.
Further, the court found that the commission’s actions in reverting to a temporary arrangement and later terminating the contract constituted unfair dismissal.
In making its final award, the court applied principles of restitution, seeking to restore Nyahoda to the position he would have occupied had the dismissal not occurred.
Among others, the court’s determination on key benefits includes a substantial portion of the compensation arising from salary for unexpired contract period, which is for 31 months, amounting to K114 347 432.60.
Nyahoda had claimed increments of 20 percent per year, but the court rejected this assumption and, instead, accepted the commission’s evidence of approved increments for 2023, 2024, and 2025.
Other benefits he was awarded include car use, amounting to K135 million, motor vehicle purchase at K136 million, fuel at K37.9 million, pension contributions was put at K11.4 million and for medical scheme he was awarded K3.7 million.
Others included school fees K36.3 million, club membership K1.2 million, security services was put at K29.8 million while K1.5 million was awarded for airtime.
Nyahoda was also compensated K11.2 million for a 13th cheque, K270 000 for leave grant and K7.8 million as leave days totalling K524.8 million.
The commission was directed to pay the said amount within 10 days of the order made by IRC deputy chairperson, dated October 20 2025. But CFTC was given the right of appeal to the High Court within 30 days.
Both CFTC spokesperson Innocent Helema and Nyahoda’s lawyer Elton Kapyepye asked for more time before commenting on the matter.
