DCI launches probe into suspected Sh6.2 billion government payroll fraud

The Directorate of Criminal Investigations (DCI) has launched a probe into suspected payroll fraud involving Sh6.2 billion after Public Service Cabinet Secretary Geoffrey Ruku handed over a forensic audit report exposing widespread irregularities in government payroll systems on Wednesday.

Speaking during a joint press briefing with Ruku, DCI Director Mohamed Amin said detectives had received the Human Resource Audit and Forensic Report and would conduct an evidence-based investigation into the suspected fraud.

"We have received a Human Resource Audit and Forensic report, and we are fully equipped under evidence-based investigation to look into the suspected payroll fraud, including the reported irregularities amounting to Sh6.2 billion identified in the initial audit report," Amin said.

The probe follows a Cabinet directive issued by President William Ruto after a sample audit of 12 out of the government's 53 state departments uncovered suspected payroll manipulation and irregularities amounting to Sh6.2 billion.

According to the audit, the review assessed the integrity of the Human Resource Information System Kenya (HRIS-K) and exposed systemic weaknesses in payroll management, including unauthorised alterations to payroll records, irregular salary payments, missing surnames, invalid Kenya Revenue Authority (KRA) PINs, multiple identity numbers and shared bank accounts.

The audit also found that HRIS-K was inadequately integrated with key government systems, with more than 300 state corporations yet to migrate to the platform.

In addition, it identified weak cybersecurity controls, including the absence of multi-factor authentication, database logging and regular penetration testing.

The DCI boss said investigators will begin by verifying personal numbers used during payroll processing before examining unauthorised changes to employee records, irregular payments and weak internal controls.

"Our teams will verify the personal numbers used in the payroll processing. We shall further examine all unauthorised alterations to records, all irregular payments, weak controls, and dismantle any criminal network involved in the manipulation of our government's payroll systems," he said.

The DCI will work with the Kenya Revenue Authority (KRA), the Assets Recovery Agency (ARA), the Financial Reporting Centre (FRC), the National Treasury, the Ministry of Public Service and other security agencies to trace the movement of funds, identify beneficiaries and recover any public money lost through the alleged fraud.

The DCI boss said the investigations would be concluded within the shortest time possible and assured Kenyans that no individual would be shielded from prosecution.