Auditor General uncovers Sh3.4 billion manual salary payments in counties
In Mombasa, 16 employees were promoted without undergoing performance appraisals, while in Kisumu, some workers advanced by more than two job groups in a single year without sufficient justification.
About 20 counties paid staff salaries manually, bypassing the Integrated Payroll and Personnel Data (IPPD) system, in transactions totalling Sh3.4 billion, Auditor General Nancy Gathungu has revealed.
The IPPD is meant to streamline payroll and human resource management for public sector employees and prevent duplication and inefficiencies associated with manual payrolls.
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“This violates the provisions of The National Treasury Circular No.13/2019, dated August 28, 2019, which requires that all personnel emoluments be processed through the IPPD system,” the report states.
Machakos and Nairobi recorded the highest manual payments at Sh487 million and Sh463.4 million, respectively. Other counties included Garissa (Sh377.7 million), Marsabit (Sh288.6 million), Samburu (Sh319.6 million), Nandi (Sh296.9 million), Nyeri (Sh268.6 million), Kisumu (Sh210 million), Mandera (Sh188.9 million), Laikipia (Sh159.3 million), Busia (Sh119 million) and Kiambu (Sh65.3 million).
The rest were Nyandarua (Sh57.8 million), Narok (Sh48.5 million), Uasin Gishu (Sh29.5 million), Wajir (Sh23.8 million), Tharaka Nithi (Sh16.7 million), Siaya (Sh14.5 million), Trans Nzoia (Sh11 million) and Nakuru (Sh1 million).
The 2023/2024 audit also flagged six counties for retaining 302 employees beyond the mandatory retirement age of 60 years, or 65 years for People with Disabilities (PWDs). Mombasa had the highest number at 96, followed by Nakuru (77), Bungoma (79), Nandi (27), Migori (17) and Lamu (4).
“This failure to enforce retirement policies inflates the wage bill and limits employment opportunities. It may also point to a lack of succession planning within the counties,” the report notes.
The Auditor General also highlighted cases of irregular recruitments, questionable promotions, use of shared bank accounts for salary payments, and delays in confirming staff to permanent positions.
In Kisii, the best-performing candidates in interviews were overlooked, raising concerns about fairness in hiring.
In Mombasa, 16 employees were promoted without undergoing performance appraisals, while in Kisumu, some workers advanced by more than two job groups in a single year without sufficient justification.
In Nandi, employees were promoted despite unresolved disciplinary or integrity issues, undermining credibility in human resource management.
Probation delays were also flagged. In Nyamira, 1,779 employees remained on probation beyond the six-month limit, while in Bungoma and Migori, 672 and 1,126 workers, respectively, exceeded their probation periods, denying them full benefits and raising concerns about possible exploitation.
On salary payments, the report said that in Bomet, salaries were deposited into shared bank accounts, exposing funds to fraud and misappropriation risks. In Siaya, 20 staff members shared the same bank account, while in Narok, 110 employees were hired without proper human resource planning or justification for their positions.
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