Uganda Airlines has suffered a major legal blow after the Industrial Court ordered it to pay its former Chief Executive Officer, Cornwell Muleya, about Shs 455 million in compensation for what the court called an unlawful and unfair dismissal.
In a scathing judgment, Justice Anthony Wabwire Musana ruled that the national carrier mishandled the termination of Muleya’s contract, describing the process as a “disguised unlawful dismissal” that violated the CEO’s right to a fair hearing.
According to court records, Muleya’s troubles began in April 2021, when he was asked to take a three-month leave of absence. Barely a month later, on May 21, 2021, he was suspended for another three months. The airline extended that suspension again in August—leaving him in limbo for half a year.
“By the date of commencement of the disciplinary hearing, the claimant had been on suspension for six months, contrary to the clear provisions of Section 63EA. That renders his suspension unlawful under the Employment Act,” Justice Wabwire ruled.
The court further found that Muleya was never given a genuine opportunity to defend himself against the allegations that led to his dismissal.
While Uganda Airlines insisted that the former CEO had been given a fair hearing, the judge found the airline’s version of events “unsupported by evidence.”
“The respondent hypothesizes that the claimant deliberately refused to attend the hearing. We do not find this acceptable. The evidence shows that between April 2021 and February 2022—when he received his termination letter—over six letters were exchanged between the two sides,” Justice Wabwire noted.
He added that the only meeting Muleya was not informed about was the oral hearing of November 11, 2021—ironically, the same meeting that recommended his dismissal.
The ruling paints a picture of a national carrier struggling to manage internal leadership disputes amid its efforts to rebrand and position itself as a serious regional airline.
“The Respondent was unable to show that it respected the claimant’s right to a fair oral hearing,” the judge said. “We therefore find his dismissal to be both procedurally and substantively unfair and unlawful.”
As a result, the court ordered Uganda Airlines to pay Muleya Shs 252 million in severance pay, Shs 77 million as four weeks’ net pay for denial of a hearing, Shs 126 million in general damages, and Shs 460,800 in unpaid gratuity.
For Muleya, who was ousted amid intense boardroom politics and public scrutiny, the judgment is more than a financial victory—it’s a public vindication. For Uganda Airlines, however, it’s another turbulent chapter in its short but stormy revival story.
