Kenya’s oldest MD prepares to exit but not without fight

By Martin Mutua

The oldest State corporation managing director is preparing to bow out but not without a storm, even after his contract was controversially extended for 12 months last year.

Under the spell of tension and boardroom wars not quite unfamiliar to Kenya Airports Authority, the board of directors met Tuesday and ratified George Muhoho’s retirement.

Mr Muhoho’s third contract expires on March 31.

Harsh words were exchanged among directors as the meeting dragged into nightfall with Muhoho’s succession being the hottest contested issue.

Outgoing Kenya Airports Authority MD George Muhoho (right) leads an inspection of the Kisumu Airport runway, last year. [PHOTO: FILE/STANDARD]

Tension has been rising at KAA as Muhoho’s exit drew close. The bone of contention has been who now takes the office charged with management of the country’s airports.

The plum job has attracted many inside KAA who are familiar with its perks and works in progress, particularly the massive multi-billion shilling expansion and rehabilitation projects under way,

including the elevation of Kisumu Airport to international status, rehabilitation of Jomo Kenyatta International Airport, and planned construction of an airport in Isiolo.

Sources within the board reported trouble started when a section of directors raised concern over an advertisement inviting applications for the Chief Executive – the Managing Director’s job ran last week.

"The board meeting scheduled for today was planned a long time ago, and has only two items on the agenda," Muhoho, 72, told The Standard in a telephone interview before it started. He said it was meant to introduce to board the new chairman Mr Martin Nyagah Wambora and also discuss performance contracts at KAA.

"There is no other agenda for the meeting and those telling you other things let them come to the meeting and raise them," he added.

However sources told The Standard Muhoho’s file had gone missing from Human Resource Department, making it difficult to tell how many leave days he had. According to Muhoho, he has only eight.

Still in office

According to our sources Muhoho, who is still in office, was supposed to have proceeded on leave pending retirement next month.

"He has not gone on leave and we are told he says he has only eight leave days as opposed to the 40, which the HR department is claiming. But since his file cannot be traced nobody knows what to do," added our source. But other sources indicated the outgoing MD was paid for his leave days, but without board approval.

Muhoho, a former Catholic priest, and one of President Kibaki’s loyal long-time friends, sources in Kenya Airports Authority, revealed, is ready to leave but not to completely pull out his roots from the organisation. He would, our sources reveal, wish to leave a part of him behind through a preferred successor.

To achieve this, it is reported he sidestepped the board of directors, which met yesterday. He also bypassed his deputy and smoothened the ground for one of his favoured division heads to take over.

Muhoho was, during the 2007 General Election, among heads of State corporations accused of taking sabbatical leave to campaign for Kibaki. Muhoho ditched Kanu in 1991 to form Democratic Party, with Kibaki. Muhoho is a politician-cum-technocrat whose heritage includes being a brother to Kenya’s first First Lady Mama Ngina Kenyatta. Ngina is the mother of Deputy Prime Minister Uhuru Kenyatta.

Last week the Ministry of Transport disowned Muhuoho’s advert because it had not been approved by the board, and was being seen as his attempt to manage his succession.

When contacted by a local daily, he said there was nothing wrong for a retiring CEO to manage his succession. He did not, however, venture into claims he was refusing to go because he did not want to hand over to his deputy Mr Mathew Wamalwa.

Extended contract

Before Transport Minister Chirau Mwakwere extended Muhoho’s contract last year, Wamalwa had been appointed CEO for a day only to be overturned, reportedly after prodding "by powers from above".

The advert ran earlier indicated Manpower Services Limited had been contracted to recruit the new CEO-MD, but was dismissed by the rest of the board as illegal since it was Muhoho’s solo bid. "The advert was tailor-made to fit the description of some close allies of Muhoho to perpetuate his legacy at the authority," our sources added. The sources said KAA succession plan was clear in that the substantive deputy MD was supposed to take over in acting capacity, pending the board’s HR committee’s recruitment of a new MD.

There were concerns among staff a high-ranking member of engineering department has already been earmarked for the job, with main consideration being ‘tribal correctness’.

Apart from Wamalwa others said to rank higher and competent for the post was Mombasa Airport Manager Yatich Kangugo, who is on job grade 14, a grade below the MD. Like Wamalwa, Kangugo has a Masters degree in aviation. Kangugo was formerly KAA general manager, but was redesignated to manage the smaller Wilson Airport when Muhoho took over. He was later moved to Mombasa.

Others mentioned include Human Resources Manager Ken Kaunda also with a MA.

"I am not allowed to transact board matters through the Press, and as such I cannot talk about that issue. But those telling you, I cannot understand why they are doing so, they should come to the meeting and say so," Muhoho told The Standard.

A fortnight ago the Government appointed another ally of Kibaki, Mr Wambora who is former Runyenjes MP, KAA board chairman. The position had been vacant for 10 months following expiry of Erastus Mwongera’s contract. Mwongera, a former Permanent Secretary at the Ministry of Roads and Public Works, fell out with Muhoho last year after he declined to renew the latter’s contract for the second time.

Mwakwere eventually imposed Muhoho on the board despite State Corporations Act’s decree empowering the board to advertise the position and forward two names to the minister for appointment. Muhoho had already served two three-year terms before the minister overturned a decision by the board to promote Wamalwa as acting KAA CEO.