The government has directed the Directorate of Criminal Investigations (DCI) to launch immediate investigations into suspected payroll fraud across Ministries, Departments, Agencies (MDAs), and State Corporations following claims of widespread irregularities affecting the public wage bill.
The directive was issued on Tuesday, June 30, during a Cabinet meeting chaired by President William Ruto at State House, Nairobi.
According to a Cabinet dispatch seen by Vantage Ke, the probe will focus on alleged manipulation of payroll systems, including unauthorised changes to employee records, irregular salary payments, and the exploitation of weak internal controls within government institutions.
The DCI has also been instructed to verify personal numbers used in payroll processing, dismantle criminal networks suspected of manipulating government payrolls, and recover public funds lost through fraudulent schemes.
“Cabinet directed the Directorate of Criminal Investigations to investigate payroll fraud, verify personal numbers used in payroll processing, dismantle criminal networks manipulating Government payroll systems, recover lost public funds, and ensure the immediate arrest and prosecution of all persons found culpable,” the dispatch read in part.
The Cabinet said the move follows a comprehensive payroll audit, which found suspected irregularities worth KSh6.2 billion in 12 out of 53 State Departments, raising concerns about the credibility of government payroll management systems.
"A sample audit of 12 of the 53 State Departments revealed suspected payroll irregularities amounting to Ksh6.2 billion, exposing unauthorised alterations to payroll records, irregular payments, weak controls over statutory deductions, and fragmented payroll management and major oversight gaps," the dispatch added.
Cabinet further directed that all individuals found responsible for the alleged fraud be identified, arrested, and prosecuted in accordance with the law.
According to the dispatch, the measures are aimed at restoring integrity to the public wage bill by rooting out long-standing payroll fraud within government institutions.
Alongside the criminal investigations, Cabinet approved the immediate rollout of a comprehensive payroll reform programme across the public sector.
The reforms include a nationwide audit of all remaining State Departments and public institutions to determine the full extent of payroll irregularities and strengthen accountability in the management of public resources.
Cabinet also ordered all Ministries, Departments, Agencies, and State Corporations to migrate to the newly upgraded Integrated Human Resource and Payroll System to standardise payroll management and improve oversight.
