Consolidated Bank Chief Executive Officer Samuel Muthemba Muturi has moved to court challenging the National Treasury and Economic Planning Cabinet Secretary John Mbadi’s decision to stop the renewal of his contract.
In the petition, Muturi accuses the CS Treasury of unlawfully overruling the bank’s board, usurping its statutory mandate, and violating his constitutional rights to fair labour practices and fair administrative action.
Muturi, who was appointed on a three-year renewable term on July 19, 2022, says he applied for renewal on January 19, 2025, exactly six months before his contract lapsed on October 11, 2025, in line with government guidelines.
He cited performance evaluations by the State Corporations Advisory Committee (SCAC), which rated him 79.6% for 2023 and 91% for 2024, and by the Consolidated Bank Board, which scored him 61.9% and 74.6% over the same period assessments classified as “good performance.”
According to the petition, the bank’s losses dropped by 70%, from Sh435 million in 2022 to sh133 million by December 2024, while the balance sheet expanded from Sh15.5 billion to Sh17.5 billion, marking the bank’s best performance in two decades.
Based on these indicators, the board wrote to the Treasury on March 21, 2025 recommending that Muturi’s contract be extended for another three years.
Despite the board’s recommendation, says Muturi, CS Mbadi declined to renew Muturi’s term and instead directed that the bank begin recruiting a new CEO.
The board sought to engage the Treasury further, but on August 19, the CS reaffirmed his directive.
The petition states that even as consultations were ongoing, the board chairperson with no authority from the board wrote to Muturi on September 12, directing him to proceed on leave pending the end of his contract.
On October 3, the CS allegedly went further and purported to revoke the appointment of several board members who had supported Muturi’s renewal.
Five days later, on October 8, 2025 the CS appointed Dominic Murage Njeru as Acting CEO.
Muturi argues that the Treasury has no legal mandate to appoint or remove the CEO of a state corporation, saying this function lies exclusively with the board under the Mwongozo Code of Governance for State Corporations and the State Corporations Act.
He also contends that the CS has no power to remove board members, an authority he claims is reserved for the President under section 7(3) of the Act and only for stated reasons.
“Once the Board members of a state corporation are appointed they must
serve for the tenure as appointed and may only be removed by the President
under section 7(3) of the State Corporations Act upon stated reasons,” read the court documents.
Muturi now wants the court to declare that his right to fair labour practices under Article 41 has been violated.
He also wants the court to declare that he is eligible for renewal of his contract for another three year.
Muturi further wants the bank be compelled to renew, and the Treasury to confirm, his reappointment.
In the alternative, he seeks damages equivalent to a full three-year term Sh101,190,780, plus gratuity and other benefits.
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