The Senate’s County Public Accounts Committee has directed Auditor-General Nancy Gathungu to carry out a detailed audit to determine how much all 47 county governments owe their workers in unpaid salaries, gratuity, pensions, and unremitted statutory deductions.
The directive follows growing concern that many counties routinely deduct money from employees’ pay but fail to forward it to the relevant agencies, leaving current and former workers facing financial difficulties. Bungoma County will be the starting point of the audit after lawmakers raised alarm over billions of shillings in pending obligations.
Committee Chairperson and Homa Bay Senator Moses Kajwang’ said members were especially troubled by delays in paying gratuity to contracted staff after they leave employment.
“It is now clear that counties are mistreating the people who work for them,” he said while instructing the Auditor-General to undertake the analysis.
The order was issued after the Committee questioned Bungoma Governor Kenneth Lusaka over issues highlighted in the Auditor-General’s report on the county’s financial statements for the 2024/2025 financial year.
Although Governor Lusaka told the Committee that employees who served between 2013 and 2017 had already been paid, concerns were raised by Bungoma Senator David Wakoli, who noted that gratuity for tutors who served during Lusaka’s first term in 2014 had not been settled.
Records show that by June 30, 2025, Bungoma County owed workers Sh549 million in unremitted pension contributions. The Auditor-General also reported salary arrears amounting to Sh1.7 billion, covering unpaid salaries for May and June 2025.
Governor Lusaka informed the Committee that the Sh1.7 billion salary arrears had since been cleared, leaving only the Sh549 million in unremitted statutory deductions. He attributed the backlog to the previous administration, stating, “Those who failed to remit deducted salaries must be pursued and prosecuted.”
To guide corrective action, the Committee instructed the Auditor-General to use an aging analysis method that groups unpaid obligations based on how long they have remained outstanding. Lawmakers said the approach would help identify long-standing delays, monitor payment patterns, and improve accountability.
The Auditor-General has been given seven days to submit a consolidated report covering all 47 counties.
During the same session, Governor Lusaka was also questioned over rising pending bills, the lack of an internal audit committee, delays in forming the County Public Service Board, and failure to follow procurement laws. The Committee noted that these gaps had resulted in termination of contracts without due process.
The audit is expected to clarify the true extent of county debts to workers and strengthen oversight to ensure salaries, pensions, and statutory deductions are paid on time across the country.
