MCAs drowning in debt as audit reveals excessive salary deductions
Makueni County had the highest number of MCAs affected, with 22 legislators and seven other staff members receiving less than a third of their basic salaries.
Members of County Assembly (MCAs) are drowning in debts and loans, with a new audit report by Auditor General Nancy Gathungu revealing that a third of their salaries are deducted to cover statutory payments and loans, leaving them financially vulnerable.
The report, covering the financial year ending June 2024, shows that at least 41 MCAs from Nairobi, Makueni and Kakamega counties were among thousands of county employees left with meagre earnings after excessive deductions, contrary to labour laws.
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According to Gathungu, the law prohibits employers from deducting more than two-thirds of an employee’s salary to ensure workers retain enough income to meet their daily needs. However, the audit reveals that a total of 1,325 county assembly workers had more than two-thirds of their salaries deducted to service loans and cover statutory deductions.
"Review of sampled payroll data for the March and June 2024 payroll revealed that 15 MCAs and five County Assembly employees had over-committed their salaries beyond two-thirds (2/3) contrary to the Employment Act, 2007 which requires that the total amount of deductions which may be deducted by an employer from the salary and wages of the employee at any one time shall not exceed two-thirds of the basic pay,” an audit on the Nairobi County Assembly reads.
“The excessive deductions resulted from management allowing the staff to incur loans and other liabilities whose repayments were deducted by check-off and which put the officers at the risk of pecuniary embarrassment. In the circumstances, Management was in breach of the law.”
Makueni County had the highest number of MCAs affected, with 22 legislators and seven other staff members receiving less than a third of their basic salaries.
"22 MCAs and 7 members of staff received a net salary which was less than one-third of their basic salary. This was contrary to Section 19(3) of the Employment Act, 2007 which states that the total amount of deduction of the wages of an employee shall not exceed two-thirds (2/3) of such wages. In the circumstances, Management was in breach of the law," the audit report on Makueni County Assembly highlights.
Kisumu (288 workers), Narok (177), Busia (131), and Turkana (an average of 261 workers monthly) were also listed among the counties with a high number of employees taking home less than a third of their pay.
In Turkana, the number of affected employees rose sharply from 303 in January 2024 to 367 by June, raising concerns over financial sustainability and efficiency in service delivery.
The Auditor-General has warned that excessive salary deductions could expose county employees, including MCAs, to financial distress and inefficiency.
"This may lead to pecuniary embarrassment and inefficiency in discharging duties by the affected officers," the audit cautions.
The financial burden has worsened in the past two years following increased statutory deductions for the National Social Security Fund (NSSF), the Social Health Insurance Fund (SHIF), and the introduction of the Housing Levy. These new deductions have significantly strained workers' earnings at a time of economic difficulty.
The crisis extends beyond county assemblies, with 21,647 workers in county executives also earning less than a third of their salaries in the past financial year. This marks a sharp increase from 8,514 employees affected in the previous year, pushing the total number of county government workers facing extreme deductions to 22,972.
In Kiambu County, a review of the Integrated Payroll and Personnel Database (IPPD) showed that while Sh571 million was spent on salaries, at least 53 employees were left with less than a third of their pay after deductions.
The findings have sparked concern that MCAs, tasked with legislation, oversight, and representation, may be vulnerable to undue influence due to financial struggles.
With their salaries heavily deducted, there is fear that some may be susceptible to manipulation by the executive or business interests, compromising the integrity of county governance.
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