A Sh6.2 billion payroll scandal uncovered across government institutions has moved to the investigation stage after the government handed over audit reports and forensic documents to the Directorate of Criminal Investigations (DCI) for further action.
The handover marks the start of investigations into suspected payroll fraud following a Cabinet directive by President William Ruto to establish how unauthorized changes were made to government payroll systems and identify those responsible.
The audit, which reviewed a sample of 12 out of 53 State departments, revealed cases of suspected payroll manipulation and unauthorized alterations, raising concerns over weaknesses in the management of one of the government’s largest financial systems.
The move followed a Cabinet decision aimed at strengthening accountability, improving payroll controls and protecting public resources from misuse.
Speaking during a high-level consultative meeting on the implementation of public service payroll reforms, Cabinet Secretary for Public Service, Human Capital Development and Special Programmes Geoffrey Kiringa Ruku said the process was meant to restore confidence in the government payroll system and ensure it remains transparent and accountable.
DCI boss, Mohamed Amin, Public Service CS Geoffrey Ruku (centre) and Principal Secretary for the State Department for Public Service in Kenya addressing the media at Harambe Annex on July 8, 2026.
PHOTO/DAVID BOGONKO NYOKANG'I
Ruku said the government payroll plays a key role in public financial management because it ensures public officers receive their salaries accurately, legally and on time.
"The Government Payroll is one of the most critical public financial management systems. It supports the delivery of public services by ensuring that public officers are remunerated accurately, lawfully and on time, while at the same time constituting a significant component of the national expenditure. Its integrity is therefore central to fiscal discipline, effective governance and public confidence in Government institutions."
The Cabinet Secretary said the government had introduced several reforms over the years to improve payroll administration, strengthen controls and enhance accountability, but findings from recent independent reviews showed that more measures were needed.
He said the independent payroll audit and forensic review conducted by a Multi-Agency Team had exposed areas of concern that required detailed investigations to establish what happened and ensure public funds were protected.
"The findings arising from the independent payroll audit and the subsequent forensic review undertaken by the Multi-Agency Team have demonstrated that, notwithstanding the progress made, significant weaknesses remain within certain aspects of payroll management. The findings point to possible payroll irregularities that require thorough investigation to establish the facts, determine responsibility where appropriate and ensure that public resources are fully protected."
Ruku said the Cabinet meeting held on June 30, 2026, directed the government to speed up payroll reforms, improve oversight and refer matters requiring criminal investigations to relevant agencies.
He said the meeting was held to implement those directives through the official transfer of payroll audit reports, forensic findings and supporting documents to the DCI.
"Today's meeting has therefore been convened to implement those Cabinet directives."
The Cabinet Secretary said the investigations were not only focused on suspected fraud but were also part of wider efforts to strengthen public institutions, improve governance and ensure government payroll systems remain reliable.
"As we undertake this important responsibility, I wish to emphasize that this process is not merely about investigating irregularities. More fundamentally, it is about strengthening institutions, reinforcing accountability, improving governance systems and ensuring that the Government payroll remains credible, transparent and resilient. It is also about assuring Kenyans that public resources are managed responsibly and that appropriate action will always be taken whenever weaknesses are identified."
Ruku called on all agencies involved in the process to work together while respecting their constitutional and legal responsibilities.
"I therefore call upon all the institutions represented here to continue working together with professionalism, objectivity, integrity and mutual respect for each other's constitutional and statutory mandates. The success of this process will depend on coordinated action, timely information sharing, strict observance of due process and an unwavering commitment to the rule of law."
He reiterated the government’s commitment to improving payroll management through stronger systems integration, dedicated payroll audit units, regular verification exercises, enhanced internal controls and continued cooperation among government agencies.
Ruku said the payroll reform programme has been advanced through policy changes, administrative measures and collaboration between different government institutions as part of efforts to improve accountability in the public service.