Ruto orders crackdown on Sh6.2bn payroll fraud, approves sweeping public service reforms

President William Ruto has chaired a Cabinet meeting that approved sweeping reforms aimed at dismantling long-standing payroll fraud within the Government, following the discovery of suspected irregularities amounting to KSh6.2 billion.

The meeting, held at State House in Nairobi on Tuesday, endorsed a whole-of-government payroll clean-up programme intended to restore integrity to the public wage bill, strengthen accountability and protect taxpayers’ money.

According to the Cabinet, the decision follows a comprehensive Government payroll audit that exposed widespread weaknesses in payroll governance across public institutions.

A sample audit covering 12 of the 53 State Departments uncovered suspected payroll irregularities worth KSh6.2 billion. The audit identified unauthorised alterations to payroll records, irregular salary payments, weak controls over statutory deductions, fragmented payroll management systems and significant oversight gaps.

In response, the Cabinet directed the Directorate of Criminal Investigations (DCI) to launch investigations into the suspected payroll fraud and bring those responsible to justice.

The Cabinet instructed the DCI 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 Government also approved a comprehensive payroll reform programme designed to strengthen oversight and eliminate loopholes that have enabled payroll manipulation over the years.

Among the measures approved is a Government-wide audit of all remaining State Departments and public institutions to establish the full extent of payroll irregularities.

Cabinet further directed all Ministries, Departments, Agencies and State Corporations to migrate to the newly revamped Integrated Human Resource and Payroll System.

The reforms will also include payroll data cleansing and validation, enhanced cybersecurity measures, the establishment of a disaster recovery site, and integration of payroll systems with other public financial management platforms.

The reforms are expected to improve transparency, enhance efficiency in payroll administration and strengthen financial accountability across Government institutions.

Cabinet said the measures are intended to close governance gaps that have contributed to fraudulent payments and misuse of public funds for decades.

In a separate move aimed at reducing Government expenditure, Cabinet approved an immediate freeze on the leasing or hiring of additional office space.

The directive will remain in force pending a nationwide audit of Government office space and its utilisation.

The Government will simultaneously develop a comprehensive programme to renovate existing public offices to improve efficiency and ensure they are better suited for service delivery.

The office space review is expected to identify underutilised facilities and reduce unnecessary spending on rented premises, in line with the Government’s broader efforts to promote prudent management of public resources.

The Cabinet resolutions signal the administration’s renewed push to tighten financial controls, strengthen governance within the public service and curb the loss of public funds through payroll fraud.

Officials said the combination of criminal investigations, system reforms, enhanced cybersecurity and stricter oversight is expected to create a more transparent and accountable payroll management system while ensuring taxpayers’ money is protected from abuse.

Ruto Orders Crackdown on KSh6.2 Billion Payroll Fraud, Approves Sweeping Public Service Reforms

President William Ruto has chaired a Cabinet meeting that approved sweeping reforms aimed at dismantling long-standing payroll fraud within the Government, following the discovery of suspected irregularities amounting to KSh6.2 billion.

The meeting, held at State House in Nairobi on Tuesday, endorsed a whole-of-government payroll clean-up programme intended to restore integrity to the public wage bill, strengthen accountability and protect taxpayers’ money.

According to Cabinet, the decision follows a comprehensive Government payroll audit that exposed widespread weaknesses in payroll governance across public institutions.

A sample audit covering 12 of the 53 State Departments uncovered suspected payroll irregularities worth KSh6.2 billion. The audit identified unauthorised alterations to payroll records, irregular salary payments, weak controls over statutory deductions, fragmented payroll management systems and significant oversight gaps.

In response, Cabinet directed the Directorate of Criminal Investigations (DCI) to launch investigations into the suspected payroll fraud and bring those responsible to justice.

The Cabinet instructed the DCI 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 Government also approved a comprehensive payroll reform programme designed to strengthen oversight and eliminate loopholes that have enabled payroll manipulation over the years.

Among the measures approved is a Government-wide audit of all remaining State Departments and public institutions to establish the full extent of payroll irregularities.

Cabinet further directed all Ministries, Departments, Agencies and State Corporations to migrate to the newly revamped Integrated Human Resource and Payroll System. The reforms will also include payroll data cleansing and validation, enhanced cybersecurity measures, the establishment of a disaster recovery site, and integration of payroll systems with other public financial management platforms.

The reforms are expected to improve transparency, enhance efficiency in payroll administration and strengthen financial accountability across Government institutions.

Cabinet said the measures are intended to close governance gaps that have contributed to fraudulent payments and misuse of public funds for decades.

In a separate move aimed at reducing Government expenditure, Cabinet approved an immediate freeze on the leasing or hiring of additional office space.

The directive will remain in force pending a nationwide audit of Government office space and its utilisation.

The Government will simultaneously develop a comprehensive programme to renovate existing public offices to improve efficiency and ensure they are better suited for service delivery.

The office space review is expected to identify underutilised facilities and reduce unnecessary spending on rented premises, in line with the Government’s broader efforts to promote prudent management of public resources.

The Cabinet resolutions signal the administration’s renewed push to tighten financial controls, strengthen governance within the public service and curb the loss of public funds through payroll fraud.

Officials said the combination of criminal investigations, system reforms, enhanced cybersecurity and stricter oversight is expected to create a more transparent and accountable payroll management system while ensuring taxpayers’ money is protected from abuse.