The Rwandan star signed for the Bankers in 2018 from Rayon Sports and was among the players who were released in 2020 as the club claimed they were let go owing to a restructuring policy.
There is still one year in Mugabo’s contract and it is for that reason the Sunrise FC player reported the Kenyan club to the world-governing body for unprocedural contract termination.
“The respondent, KCB FC, have to pay to the claimant the amount of Kenyan shilling (KSH)1,809,667 as mitigated compensation for breach of contract, plus 5% interest per annum as from 21 August 2020 until the date of effective payment," Fifa's ruling stated, as was reported by Nation Sports.
KCB have to pay the player the ordered dues within 45 days in order to avoid further punishment.
“The respondent shall be banned from registering any new players, either nationally or internationally up until the due amount is paid and for the maximum duration of three entire and consecutive registration periods,” Fifa added.
“In the event that the payable amount as per the decision is still not paid by the end of the ban of three entire and consecutive registration periods, the present matter shall be submitted, upon request to the Fifa Disciplinary Committee.”
It is understood KCB will contest the ruling and will move to the Court of Arbitration for Sports (CAS) in order to have the judgement annulled at the appeal level.
Wazito were the first FKF PL side to receive a Fifa order, this year, to pay five players for breach of contracts.
The stars who reported Wazito to Fifa were Ugandan midfielder Mansoor Safi Agu, DR Congo international Piscas Muhindo, Ghanaian Paul Acquah, Liberian Augustine Otu and Togolese defender Issofou Bourhana.
The Fifa decision to punish Wazito was then welcomed by the Kenya Footballers Welfare Association (Kefwa).
“Kefwa welcomes the judgments rendered by the Fifa Dispute Resolution Chamber regarding Wazito Football Club's unfair dismissal and the termination of contracts of five of its former players,” Kefwa’s statement read.
“It is our humble plea and request to FKF to seize the opportunity by the Fifa rulings to establish the long-awaited National Disputes Resolution Chamber to hear and determine domestic cases in line with the Fifa requirements.”