When Cornwell Muleya was appointed chief executive officer of Uganda Airlines in February 2020, he was seen as the man who would steer the revived national carrier to success.
Two years later, he was out of a job, suspended, accused of mismanagement, and dismissed amid a storm of controversy.
Now, the Industrial Court of Uganda has ruled that Muleya’s dismissal was unlawful and unfair, ordering the airline to pay him about half a billion shillings in compensation.
In a ruling delivered by Justice Anthony Wabwire Musana, it was found that Uganda Airlines had violated both the Employment Act and its own Human Resource Manual by failing to accord the former chief executive officer a fair hearing before firing him.
Court found that Muleya was never properly notified of the disciplinary hearing that led to his dismissal, even as the airline claimed he refused to attend. Yet, it failed to produce any proof that he was served with the invitation.
‘The failure to serve notice of the oral hearing was a procedural misstep resulting in procedural unfairness,’ Justice Musana ruled.
Court also found that extending Muleya’s suspension for six months, beyond the legal limit of four weeks, was unlawful and that what the airline described as a termination with notice was in fact a disguised dismissal.
As a result, Justice Musana ruled that both his suspension and dismissal were procedurally and substantively unfair.
For failure to observe the law, court ordered Uganda Airlines to pay Muleya Shs252m as severance pay, Shs77m for failure to accord him a fair hearing, Shs126m as general damages for unlawful termination, and Sh460,800 as unpaid gratuity each month he had worked over the two years, which rounds off to about Shs11m.
He was also awarded half of his taxed legal costs. In total, the amount due to him, excluding costs, stands at about Sh455.8 million, which could take the total cost to about half a billion shillings (Shs500m).
Court also ordered Uganda Airlines to issue Muleya a certificate of service within 21 days of the ruling, by November 14, 2025.
Justice Musana noted that while the airline had alleged serious mismanagement, it failed to follow the required procedure to prove its case.
‘Because the [Uganda Airlines] was unable to show that it respected [Muleya’s] right to a fair oral hearing, we find his dismissal to be both procedurally and substantively unfair and unlawful,’ he ruled.
For Muleya, the judgment is a significant moral victory after a bruising three-year battle to clear his name.
Through his lawyers of Muwema and Co. Advocates, Muleya said the ruling was long-overdue justice.
‘Our client’s exit from Uganda Airlines didn’t follow due process. So his rights have been restored by this award,’ said Fred Muwema, on behalf of Muleya.
Muleya had sought more than Shs3b in damages for what he described as reputational harm, emotional distress, and financial loss, but the court granted only a fraction of that amount.
Muleya, who we understand has since left Uganda, has been working in his native country, Zambia.
Uganda Airlines has already moved to challenge the ruling, with the carrier, through SM and Co Advocates (formerly Shonubi Musoke and Co. Advocates), filing a Notice of Appeal, citing dissatisfaction with the decision.
In a follow-up letter, the airline requested the full record of proceedings to prepare for the appeal, signaling that the legal fight is far from over.
Both ambition and turbulence marked Muleya’s time at the helm of Uganda Airlines.
He oversaw the expansion of routes and acquisition of new aircraft, but his administration also faced persistent allegations of financial mismanagement and governance lapses.
His suspension in May 2021 and eventual termination in February 2022 came amid government investigations into the airline’s operations.
While the carrier may have hoped to close that chapter, the court’s ruling has reopened it, with a hefty financial cost attached.
If the Court of Appeal upholds the Industrial Court’s decision, Uganda Airlines will have to pay Muleya the full Sh466m plus costs, marking a costly reminder that even in matters of management and discipline, due process cannot be ignored.