Coastal counties on the spot for irregular retention of retirees, underpaying staff

Coastal county governments are under scrutiny for irregularly retaining employees beyond the mandatory retirement age, carrying out irregular promotions, and underpaying employees, raising concerns over non-compliance with public service regulations.

The 2023/2024 Auditor General's report flagged Mombasa, Kilifi, Lamu, and Taita Taveta counties for retaining dozens of employees who had reached the retirement age of 60 years, contrary to the Public Service Commission Human Resource Policies and Procedures Manual, 2016.

In Mombasa County, 96 employees were found to still be on the payroll despite surpassing the retirement age. The county management claimed some employees were on extended contracts while others were living with disabilities.

“This was contrary to the Public Service Commission Human Resource Policies and Procedures Manual, 2016, which states that all officers shall retire from the service on attaining the mandatory retirement age of sixty (60) years, sixty-five (65) years for persons with disabilities, and/or as may be prescribed by the government from time to time. Although management explained that the officers were on extended contracts and others were living with disabilities, this was not supported with documents on contract extensions and disability certificates,” the report reads.

The report also disclosed that sixteen (16) employees were irregularly promoted by more than one job group higher during the year without performance appraisal.

“This was contrary to the Human Resource Policies and Procedures Manual for the Public Service, 2016, which provides that the performance appraisal report shall form the basis for placement, promotion, and mobility of staff within and across the civil service,” the Auditor General's report warned.

Additionally, 237 employees in Mombasa were found to be earning less than one-third of their basic salaries due to excessive salary deductions, contrary to the Employment Act, 2007, which caps deductions at two-thirds of an employee's basic pay.

Mombasa County was also found to be in breach of the law for irregular appointments in acting positions.

“Review of human resource records revealed that seven (7) employees had acted in various capacities for periods of more than six (6) months, contrary to the Public Service Commission Act, 2017, which provides that an officer may be appointed in an acting capacity for a period of at least 30 days but not exceeding a period of six (6) months,” the report stated.

In Kilifi County, 26 employees who had attained the retirement age were still registered in the payroll, while 87 staff members were irregularly promoted without merit-based appraisals.

“Review of payroll records and the Integrated Payroll and Personnel Database (IPPD) revealed that eighty-seven (87) staff members promoted during the year were not included in the list of staff promoted or re-designated, contrary to the Human Resource Policies and Procedures Manual for the Public Service, 2016, which provides that recruitment shall be undertaken on the basis of fair competition and merit,” the report read.

A review of Kilifi County’s payroll records also revealed that various employees had deductions exceeding two-thirds of their basic pay, in violation of Section 19(3) of the Employment Act, 2007.

The law stipulates that the total amount of all deductions made by an employer from an employee’s wages at any one time shall not exceed two-thirds of such wages unless otherwise prescribed by the Minister. The review showed that the number of affected staff varied across the months, with 11 employees in July 2023, 9 in August 2023, 8 in September 2023, 6 in October 2023, 3 in November 2023, 9 in December 2023, 4 in January 2024 and February 2024, 3 in March 2024, 6 in April 2024, 3 in May 2024, and 2 in June 2024.

The findings raise concerns about the county’s compliance with labour laws and the protection of employees' rights.

Kilifi was also found to have failed to comply with the National Cohesion and Integration Act, 2008, which states that no public establishment shall have more than one-third of its staff from the same ethnic community.

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“Review of payroll records revealed that out of the total number of staff members of four thousand four hundred and nine (4,409), a total of three thousand four hundred and ninety-six (3,496) or 79% were from the dominant community.”

The report also flagged Tana River County for non-compliance with the National Cohesion and Integration Act, 2008, after it emerged that 38% of its workforce hailed from one dominant ethnic community, exceeding the 30% threshold allowed by law.

The county was found to have recruited one hundred and sixty-two (162) new employees, with no persons with disabilities among them, in breach of the Persons with Disabilities Act, 2003 and the Human Resource Policies and Procedures Manual for the Public Service, 2016.

Additionally, an examination of the Integrated Payroll and Personnel Database (IPPD) revealed that three hundred and thirty-one (331) employees had salary deductions exceeding two-thirds of their basic pay, in breach of Section 19(3) of the Employment Act, 2007, which prohibits such excessive deductions.

In Lamu County, four employees who had reached the retirement age were still in service, receiving Sh3.5 million in emoluments. The county justified the decision by citing the officers' rare skills, but no supporting evidence was provided.

In Taita Taveta County, during the year under review, two hundred and one (201) new staff were hired by the county; however, no annual recruitment plans, including evidence of budgetary allocation, were provided for audit.

“This was contrary to the County Human Resource Management Policy and Manual, 2020, which requires county departments to develop annual recruitment plans backed by evidence of budgetary allocation, which is forwarded to the County Public Service Board at the beginning of each financial year to enable it to fill vacancies. In addition, management did not prepare a human resource plan to support the achievement of goals and objectives in the strategic plan, as required by the County Human Resource Management Policy and Manual, 2020.”

Meanwhile, Kwale County was found to have violated ethnic balance requirements, with 76% of its workforce drawn from one dominant ethnic community, far above the recommended 70% limit.

The report highlights widespread breaches of public service regulations across coastal counties, raising concerns about transparency, accountability, and equal employment opportunities.