MPs demand audit of State's internship programme over payroll inconsistencies, weak financial systems

A parliamentary committee has directed the Auditor General to conduct a special audit of the Public Service Internship Programme (PSIP). This follows concerns that persistent payroll inconsistencies, delayed stipend payments, and weak financial management systems have continued to affect the graduate placement scheme since its inception.

The audit will cover the programme’s financial and payroll records from 2019 and is expected to examine long-standing accountability gaps that have affected its implementation.

The National Assembly Budget and Appropriations Committee said the review should be completed by December 30, 2026, as part of efforts to address recurring challenges in the programme’s administration.

In its report, the committee said the audit is meant to tackle issues that have been present since the programme began.

“This audit is intended to address persistent challenges experienced since the programme's inception, including payroll inconsistencies, delays in stipend payments, and weaknesses in financial management and accountability systems,” reads the report.

The committee further directed that funds allocated to the PSIP be strictly used to pay interns and not diverted to other expenses.

“Additionally, the funds allocated to the PSIP programme should only be applied for the payment of stipends and not for operational expenses," the Committee said.

Introduced in 2019, the PSIP Programme was designed to give graduates practical workplace experience and improve their employability at a time when the economy has struggled to create enough formal jobs.

Under the scheme, graduates are attached to ministries, departments and agencies across the national government for a one-year internship period. Each intern receives a monthly stipend of Sh25,000.

Participants are drawn from all regions of the country and deployed to public institutions to gain skills needed in government service and the wider labour market.

The programme recruits graduates from diverse academic backgrounds, including engineering, business, education, humanities, agriculture and social sciences.

PSIP is funded by the national government, with most of the allocation going towards payment of monthly stipends for interns during their one-year placements.

Over time, the programme has grown into one of the largest government-run graduate placement initiatives, coming at a period of rising youth unemployment and growing pressure on the State to expand opportunities for young people entering the job market each year.