NAIROBI, Kenya – County governments are at the center of a growing crisis involving ghost workers, according to a new report by the Controller of Budget (COB).
The report reveals that, despite a legal requirement to use integrated payroll systems, many counties continue to pay salaries through manual payrolls, creating loopholes for corruption and the siphoning of public funds.
In the fiscal year ending June 30, 2023, counties disbursed a staggering Sh16 billion in salaries using manual payrolls.
COB Margaret Nyakang’o condemned this practice, noting that it directly contravenes regulations requiring all government entities to pay workers through the Integrated Personnel Payroll Database (IPPD).
“The manual payroll is prone to abuse and may lead to the loss of public funds where there is a lack of proper controls,” Nyakang’o warned in the report presented to Parliament.
The report outlines that the problem is widespread, affecting all 47 devolved units and accounting for 7% of the Sh208 billion wage bill.
The findings suggest that some unscrupulous officials may be exploiting the unregulated hiring of contract and casual workers to perpetuate the ghost worker menace.
Counties such as Nairobi, Siaya, and Homa Bay are named as the worst offenders. Nairobi led with Sh2.5 billion paid manually, followed by Siaya with Sh1.1 billion.
In Homa Bay, Sh759 million was paid outside the required system. Alarming findings from an audit by PriceWaterhouseCoopers revealed over 1,780 ghost workers in Homa Bay alone, draining Sh300 million annually.
The report further exposes widespread misuse of manual payrolls in other counties, including Wajir (Sh622 million), Machakos (Sh600 million), Nakuru and Busia (Sh582 million each), Marsabit (Sh562 million), and Laikipia (Sh528 million).
Smaller counties such as Tana River and Lamu also registered significant payments, escalating concerns over potential payments to non-existent employees.
The persistence of this issue has renewed calls for county governments to fast-track the acquisition of Unified Personnel Numbers (UPNs) for their employees, as required by law.
Nyakang’o stressed that full integration into the government payroll system is essential to avoid further misuse of public funds.
Recent audits ordered by governors like James Orengo (Siaya), Simon Kachapin (West Pokot), and Simba Arati (Kisii) have revealed thousands of ghost workers collecting salaries unlawfully.
For instance, Orengo’s audit exposed 111 ghost workers, while Kachapin uncovered over 2,300 in West Pokot.
The financial strain from these irregular payments has raised alarms, especially as counties struggle to keep personnel expenditures below the legal ceiling of 35% of their total revenue.
Nyakang’o urged counties to contain wage bills at sustainable levels and to strictly adhere to the approved staffing levels.
The national government has also been implicated, with the Public Service Commission recently revealing over 20,000 ghost workers on its payroll, including within prominent agencies like State House and New KCC.
The report reveals that, despite a legal requirement to use integrated payroll systems, many counties continue to pay salaries through manual payrolls, creating loopholes for corruption and the siphoning of public funds.
In the fiscal year ending June 30, 2023, counties disbursed a staggering Sh16 billion in salaries using manual payrolls.
COB Margaret Nyakang’o condemned this practice, noting that it directly contravenes regulations requiring all government entities to pay workers through the Integrated Personnel Payroll Database (IPPD).
“The manual payroll is prone to abuse and may lead to the loss of public funds where there is a lack of proper controls,” Nyakang’o warned in the report presented to Parliament.
The report outlines that the problem is widespread, affecting all 47 devolved units and accounting for 7% of the Sh208 billion wage bill.
The findings suggest that some unscrupulous officials may be exploiting the unregulated hiring of contract and casual workers to perpetuate the ghost worker menace.
Counties such as Nairobi, Siaya, and Homa Bay are named as the worst offenders. Nairobi led with Sh2.5 billion paid manually, followed by Siaya with Sh1.1 billion.
In Homa Bay, Sh759 million was paid outside the required system. Alarming findings from an audit by PriceWaterhouseCoopers revealed over 1,780 ghost workers in Homa Bay alone, draining Sh300 million annually.
The report further exposes widespread misuse of manual payrolls in other counties, including Wajir (Sh622 million), Machakos (Sh600 million), Nakuru and Busia (Sh582 million each), Marsabit (Sh562 million), and Laikipia (Sh528 million).
Smaller counties such as Tana River and Lamu also registered significant payments, escalating concerns over potential payments to non-existent employees.
The persistence of this issue has renewed calls for county governments to fast-track the acquisition of Unified Personnel Numbers (UPNs) for their employees, as required by law.
Nyakang’o stressed that full integration into the government payroll system is essential to avoid further misuse of public funds.
Recent audits ordered by governors like James Orengo (Siaya), Simon Kachapin (West Pokot), and Simba Arati (Kisii) have revealed thousands of ghost workers collecting salaries unlawfully.
For instance, Orengo’s audit exposed 111 ghost workers, while Kachapin uncovered over 2,300 in West Pokot.
The financial strain from these irregular payments has raised alarms, especially as counties struggle to keep personnel expenditures below the legal ceiling of 35% of their total revenue.
Nyakang’o urged counties to contain wage bills at sustainable levels and to strictly adhere to the approved staffing levels.
The national government has also been implicated, with the Public Service Commission recently revealing over 20,000 ghost workers on its payroll, including within prominent agencies like State House and New KCC.
