Ten counties flagged for bypassing official payroll systems to pay staff

Controller of Budget Margaret Nyakang'o when she appeared before the Senate Finance and Budget Committee over the 2025 Budget Policy Statement at County Hall, Nairobi, on March 11, 2025. [Boniface Okendo, Standard] Ten counties in the Western and Nyanza regions have been flagged by the Controller of Budget (CoB) for processing staff salaries outside of the approved payroll systems. In her latest report for the 2024/2025 financial year, CoB Dr Margaret Nyakang'o warned that paying salaries outside the Integrated Personnel and Payroll Database (IPPD) system could lead to a loss of public funds. She also highlighted that this practice had inflated the wage bills in the 10 counties. In Bungoma County, employee compensation amounted to Sh3.5 billion, which accounted for 51 per cent of the county's total revenue of Sh6.03 billion. This marked an increase from Sh2.58 billion in the previous period (2023/24). According to the report, Sh3.44 billion of the wage bill was processed through the approved payroll system, while Sh99.12 million was processed through manual payrolls. In Kakamega County, employee compensation reached Sh3.47 billion, or 47 per cent of the county's Sh7.43 billion revenue. This was an increase from Sh2.15 billion in the previous period.Of the total wage bill, Sh95.7 million was processed outside the IPPD system, accounting for three per cent of the total PE cost. Kisumu County spent Sh2.88 billion on employee compensation, which constituted 52 per cent of the available revenue of Sh5.52 billion. This represented an increase from Sh2.28 billion in 2023/24. Sh199.11 million of the wage bill was processed through manual payrolls, accounting for seven per cent of the total public expenditure cost. Additionally, the County Assembly spent Sh19.21 million on committee sitting allowances for the 48 Members of the County Assembly (MCAs). Homa Bay County spent Sh3.48 billion on recurrent expenditure, including Sh2.82 billion on employee compensation, which represented 61 per cent of the county's Sh4.65 billion revenue. Sh2.79 billion of this was processed through the IPPD system, while Sh34.5 million was processed manually. The County Assembly allocated Sh30.9 million for committee sitting allowances for the 54 MCAs and the Speaker, within an annual budget allocation of Sh45.05 million. Kisii County spent Sh463.48 million on development programmes and Sh2.73 billion on recurrent expenditure. A portion of the wage bill, Sh6.56 million, was processed through manual payrolls, accounting for less than one per cent of the total personnel emoluments. The Kisii County Assembly spent Sh28.71 million on committee sitting allowances for the 71 MCAs, which was within the annual budget allocation of Sh65 million. Busia County spent Sh1.1 billion on employee compensation, representing 27 per cent of the total revenue of Sh4.12 billion, a decrease from Sh1.96 billion in 2023/24. Sh975.97 million of the personnel emoluments were processed through the approved payroll system, and Sh122.71 million was processed through manual payrolls. The Busia County Assembly spent Sh4.75 million on committee sitting allowances for the 53 MCAs, within an annual budget allocation of Sh14.78 million. Trans Nzoia County allocated Sh1.46 billion for employee compensation, accounting for three per cent of the Sh3.95 billion total revenue, a decrease from Sh1.82 billion in 2023/24. Sh1.41 billion was processed through the approved payroll system, while Sh45.68 million was processed through manual payrolls. In Migori County, Sh1.46 billion was allocated for employee compensation, which represented 26 per cent of the county's Sh5.66 billion revenue, a decrease from Sh1.78 billion in 2023/24. Personnel emoluments were processed through the required payroll system, and the County Assembly spent Sh18.04 million on committee sitting allowances for the 60 MCAs, within an annual budget allocation of Sh43.52 million. Siaya County allocated Sh1.23 billion for employee compensation, which represented 24 per cent of the Sh5.04 billion total revenue, a decrease from Sh1.51 billion in 2023/24. Sh1.08 billion of the personnel emoluments were processed through the Integrated Personnel and Payroll Database, but Sh200 million was processed manually. Vihiga County spent Sh2.09 billion on recurrent expenditure, of which Sh1.53 billion was for personnel emoluments, processed through the government payroll system. However, Sh39.75 million was processed through manual payrolls. These discrepancies, especially regarding payments outside the approved payroll systems, have raised concerns over the integrity of public fund management and the need for stricter oversight to prevent further financial mismanagement.

Ten counties flagged for bypassing official payroll systems to pay staff

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