The Government on Monday sent home Postmaster General Fred Odhiambo.
Senior officials at the Ministry of Information and Communications confirmed the decision to send home the postmaster, but there was no word yet on who is to replace him at the head of the Postal Corporation.
Mr Odhiambo confirmed to the Nation that he had been removed from the position.
"I'm baffled. We were still all waiting for the report but it seems the Minister [Samuel Poghisio] has chosen to act before it is released. I will talk to my lawyers before deciding next cause of action," he said.
The postal body has lately been thrown into a controversy over the management of its money transfer service, PostaPay which forced the Government to invite consultancy firm Deloitte Touche to investigate its dealings.
Mr Odhiambo has been sent home three months before his current contract was due to lapse.
Deloitte and Touche were contracted in October last year to investigate the PostaPay system and determine whether the corporation was getting value from the agreement with the American technical service firm, Afripayments Ltd.