NAIROBI, Kenya – The Employment and Labour Relations Court has ruled against the Nairobi City Water and Sewerage Company (NAWASCO) Board’s attempt to unlawfully extend the contract of its Managing Director, Eng. Nahashon Muguna, for an additional three years.
Eng. Muguna, whose contract and mandatory retirement both fall due on May 27—coinciding with his 60th birthday—had been slated to continue in office until May 26, 2028, following a board decision.
However, Justice Hellen Wasilwa declared the extension invalid, citing statutory limits on employment beyond the retirement age.
The judge emphasized that Eng. Muguna failed to demonstrate the specialised expertise or exceptional competence required by law to justify his continued service past the age of 60.
“The law must be upheld,” Justice Wasilwa noted, affirming that statutory retirement provisions are clear and binding.
The legal challenge was brought by George Otieno Owalo, Deputy Secretary General of the Kenya Union of Water and Sewerage Employees, who argued that the NAWASCO Board’s extension of Eng. Muguna’s term violated mandatory retirement rules and public service laws.
Owalo highlighted that Eng. Muguna had served in an acting capacity for over two years—far exceeding the six-month limit stipulated under Section 34 (3) of the Public Service Act—before being confirmed as substantive Managing Director.
“This prolonged acting appointment was illegal from the outset,” Owalo stated in his petition. “To now extend the tenure beyond the statutory retirement age compounds this illegality. The Public Service Commission does not have the discretion to ignore these laws.”
The union official further challenged Eng. Muguna’s defence, which relied primarily on claims of strong institutional performance supported only by his curriculum vitae.
Owalo dismissed these as “bald allegations” unsupported by certifications or verifiable evidence of exceptional qualifications.
While Justice Wasilwa did not explicitly order NAWASCO to initiate a recruitment process to fill the impending vacancy, the ruling effectively ends Eng. Muguna’s term on May 27, leaving the Board with no option but to begin the search for a new managing director.
NAWASCO, which serves Nairobi’s growing population with water and sewerage services, has recently faced several operational challenges, including water supply disruptions and customer service improvements.
The leadership transition comes at a critical time for the utility company.
