- The World Bank has demanded payroll reforms in Kenya as a condition for unlocking about KSh94 billion in loans
- A forensic audit has identified suspected payroll fraud of KSh6.2 billion and more than 17,000 suspected ghost workers across national and county governments.
- The Public Service Commission has warned against irregular payments and directed government agencies to process salaries only through the official payroll system.
The World Bank has demanded stronger payroll reforms in Kenya as the country works to unlock about KSh94 billion in financing under the Eighth Development Policy Operation, in what could become one of the most far-reaching examinations of the public workforce in years.
At the centre of the reform is a requirement that public payroll records be accurate, consistent and verifiable across national and county governments and other public institutions.
The National Treasury is expected to harmonise human-resource and payroll data, introduce unified payroll numbers, and clean county payrolls using findings from the Office of the Auditor-General.
A forensic audit has identified suspected payroll fraud estimated at KSh6.2 billion across national and county governments, while more than 17,000 suspected ghost workers have reportedly been identified across public institutions.
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The Public Service Commission has warned against approving irregular payments, and government agencies have been directed to process salaries strictly through the official payroll system. The directive is aimed at eliminating parallel payrolls, unexplained employees and payments that cannot be verified.
Government human-resource officers and accounting officers are now under increased scrutiny over their role in verifying and approving payroll entries, as authorities work to distinguish genuine employees and administrative errors from fraudulent entries and deliberate manipulation.
The cleanup exercise is expected to run alongside the broader KSh94 billion financing programme, with the Treasury tasked with harmonising records across both national and county governments to establish a unified standard of payroll integrity.
By Hillary Muhalya
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