The Cabinet has ordered the Directorate of Criminal Investigations (DCI) to investigate suspected payroll fraud after a government audit uncovered irregularities amounting to KSh6.2 billion in 12 State Departments.
The decision was reached during Tuesday’s Cabinet meeting chaired by President William Ruto at State House, Nairobi.
A government payroll audit revealed widespread weaknesses in payroll management, including unauthorised alterations to payroll records, irregular payments, weak controls over statutory deductions and fragmented payroll systems.
Cabinet directed the DCI to verify personal numbers used in payroll processing, dismantle criminal networks behind the fraud, recover lost public funds and ensure those responsible are arrested and prosecuted.
“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 Cabinet dispatch states.
Cabinet also approved sweeping reforms aimed at cleaning up government payrolls, including a government-wide payroll audit, migration of all public institutions to a revamped Integrated Human Resource and Payroll System, enhanced cybersecurity, payroll data validation and integration with other public financial management systems.
The reforms are intended to restore integrity in public payroll management, reduce wasteful expenditure and safeguard taxpayers’ money.