Kenyatta National Hospital and Moi University have been identified as the public institutions with the largest number of employees receiving salaries outside the official government payroll, according to a compliance review by the Public Service Commission for the financial year ending June 2025.
The findings have raised fresh concerns over wage management and adherence to established payroll rules in the public service.
The report shows that Kenyatta National Hospital had 1,136 staff receiving salaries through alternative arrangements, the highest among all 511 institutions reviewed. Moi University followed with 695 officers paid off the system, meaning the two accounted for almost half of all public servants being paid outside the official payroll.
Public sector watchdogs have long warned that paying staff outside the authorised payroll structure can weaken financial accountability, obscure the true size of the wage bill, and increase the risk of irregular payments.
Continued use of such arrangements threatens reforms aimed at consolidating payroll systems across the government.
Overall, 3,868 public officers from 72 institutions were reported to have been paid outside the payroll, representing 14.1 percent of the 511 entities assessed. With a combined workforce of 244,208 officers, those paid off-system accounted for 1.6 percent of the total workforce.
“Of the officers paid outside payroll, the highest number, 778 (20.1 percent), was paid for a period above 12 months, followed by 748 (19.3 percent) for a period between seven and 12 months and 181 (4.7 percent), between one month to six months. The payment period for 2,157 (55.8 percent) officers was, however, not indicated,” wrote the PSC. “The highest number of officers paid outside the payroll was in Kenyatta National Hospital 1,136 (29.4 percent), Moi University 695 (18 percent), Kenya Forest Service 385 (10 percent), the Kenya Wildlife Service 310 (eight percent) and Pyrethrum Processing Company of Kenya 274 (7.1 percent).”
The report further shows that public universities recorded the highest proportion of staff paid outside the payroll system at 3.3 percent. State corporations and semi-autonomous agencies followed with 2.6 percent, while statutory commissions and authorities recorded 2.5 percent.
Constitutional commissions, independent offices, and ministries and State departments had the lowest levels, each at 0.3 percent.
The review also highlighted that 1,566 officers, or 0.6 percent of the workforce evaluated, went without pay during the year. Kenyatta National Hospital had the largest number of unpaid staff at 1,135, and the PSC noted the hospital did not provide an explanation for the non-payment.
