A report by Controller of Budget Margaret Nyakang'o revealed that Kenyan counties continued to use vouchers to pay some employees in cash, despite the existence of the Human Resource Information System (HRIS) designed to control and prevent theft in salary payments. This practice has raised concerns about the misuse of public funds. The report, which covers the financial year ending June 30, 2026, shows that cash payments were mainly used to pay casual workers, additional allowances for security officers, employees not registered in HRIS, and pension contributions.
The counties leading in this violation are Nakuru, Wajir, Nairobi, Siaya, and Mandera, followed by Meru, Elgeyo Marakwet, Kitui, Busia, and Lamu. Nakuru County led with Sh1.86 billion, representing 21.8% of its total salary expenditure, which included payments to 18 employees not in HRIS and 596 casual workers. Wajir, Nairobi, Siaya, and Mandera also made significant cash payments, with Wajir using Sh755.35 million, Nairobi Sh496.07 million, Siaya Sh401.65 million, and Mandera Sh362.41 million.
The Controller of Budget, Margaret Nyakang'o, expressed concern that the use of cash payments for salaries puts public funds at risk of misuse and may allow for the existence of ghost workers. She emphasized that cash payments can lead to the loss of funds and highlighted that counties with high instances of cash payments include Nakuru, Wajir, Nairobi, Siaya, and Mandera.
Other counties that made significant cash payments include Meru (Sh356.61 million), Elgeyo Marakwet (Sh264.11 million), Kitui (Sh259.36 million), Lamu (Sh236.78 million), Garissa (Sh231.53 million), and Busia (Sh230.93 million). In total, 34 counties used cash payments for salaries, with some citing delays in receiving staff numbers, incomplete registration in HRIS, and lack of employment letters for some workers as reasons.
The HRIS system was implemented to bring transparency and accountability in the management of public funds. However, some counties have been slow to adopt the system, citing technical challenges and delays in registration. The Controller of Budget has emphasized the need for counties to adhere to the digital payment system to prevent misuse of funds.
In April 2024, counties were directed to transfer all salary payments to the HRIS system by June 2025. However, the report shows that many counties have not complied with this directive. Narok and Trans Nzoia counties are the only two that have not used cash payments for salaries.
The report highlights the need for improved oversight and accountability in the management of county funds. The Controller of Budget has called for stricter controls to be put in place to prevent the misuse of public funds. The issue has also raised concerns about the existence of ghost workers and the need for counties to regularize their workforce.
Key points
- Counties paid Sh8.3 billion in cash as salaries, bypassing the digital HRIS system.
- The practice has raised concerns about the misuse of public funds and the existence of ghost workers.
- Counties have been directed to adhere to the digital payment system to prevent misuse of funds.
