36 counties flagged for violating employment laws, mismanaging wage bills
Kisii County was found to have the highest wage bill, at a staggering 60 per cent, followed by Mombasa at 57 per cent with Laikipia, Elgeyo Marakwet, Nyeri, Murang’a, Homa Bay, and Nyamira, all having wage bills between 53 and 55 per cent.
At least 36 counties have been flagged for violating employment laws, with numerous issues including breaches of the wage bill threshold, irregular staff recruitment and non-compliance with regulations on ethnic composition.
According to the report by the Senate County Public Accounts Committee, tabled by Homa Bay legislator Moses Kajwang’, the devolved units have been found presiding over several human resource management irregularities.
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Among the most concerning violations are the exceeding of the legally mandated wage bill threshold, irregular employee recruitment processes, failure to implement an employee appraisal system and non-compliance with laws regarding the one-third basic salary rule and probationary periods.
The report highlights that 36 out of 47 counties have breached the Public Finance Management (National Government) Regulations, 2015, which set a cap on compensation for employees, including allowances and benefits, to no more than 35 per cent of a county’s annual revenue.
Kisii County was found to have the highest wage bill, at a staggering 60 per cent, followed by Mombasa at 57 per cent with Laikipia, Elgeyo Marakwet, Nyeri, Murang’a, Homa Bay, and Nyamira, all having wage bills between 53 and 55 per cent.
In reviewing the Auditor General’s reports for County Executives for the financial year ending June 30, 2024, the committee noted recurring issues related to human resource management.
One of the most troubling findings was that salaries for some county employees were paid into the same bank accounts, despite the employees having different personal numbers, ID numbers, and names. This practice violates Section E.2(2) of the County Public Service Human Resource Manual, 2013, which mandates that salaries be paid into individual bank accounts.
“The committee observed that county executives continue to recruit employees without the required qualifications, in complete breach of the County Public Service Board Circular (CPSB). As such, the regularity of such recruitment could not be ascertained by the Auditor General,” the report stated, emphasising the seriousness of the issues at hand.
Bloated system
Recently, National Treasury Cabinet Secretary John Mbadi raised concerns about the current devolution system, suggesting that the country should revert to the previous structure of eight provinces or a maximum of 14.
Mbadi criticised the current 47 counties, arguing that they have become unsustainable due to the escalating wage bill.
He pointed out the inefficiencies brought about by the current governance structure. He claimed that the system has led to the proliferation of unnecessary staff roles across counties, with positions like directors of fishermen, boda boda and music culture directors earning high salaries.
He also mentioned the large number of deputies and the struggle to allocate meaningful tasks for these officials.
“You go to counties, and you will find all kinds of staff; you find directors of fishermen, boda bodas, music, culture directors earning big salaries, with deputies, we have so many people. Again, that is not withstanding the fact that 47 counties are just too much for a country,” he said in an interview with Citizen TV.
Mbadi further noted that the 47 counties, each with its own governor and deputy, lead to an overwhelming number of officials and a bloated government structure. He suggested that reducing the number of counties could help address the current financial crisis.
“I would go for a maximum of 14, but even 8 would still serve us perfectly well, with devolution of resources going to the grassroots. We can devolve resources without devolving the heavy government to the grassroots. It is unsustainable,” Mbadi said.
The CS emphasised that Kenya’s government has become too expensive, with the national government alone spending Sh80 billion per month on salaries. He also pointed out the country’s growing debt, with Sh1.1 trillion going towards loan repayments, leaving little room for development.
Mbadi’s comments followed a wider discussion on the structure of devolution, questioning whether the system as it stands truly benefits the people of Kenya.
He argued that the focus should be on devolving resources, not the creation of more layers of government.
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