Counties used manual payrolls to pay Sh3 billion outside the law, CoB Margaret Nyakang’o reveals
Controller of Budget Margaret Nyakang’o.
The Controller of Budget (CoB) has flagged expenditure of more than Sh3 billion used to pay salaries in the counties outside the approved payroll systems in the first quarter of the 2023/2024 financial year.
The counties are on the spot for paying salaries through the manual payroll (manual system), instead of the recommended Integrated Personnel and Payroll Database(IPPD) system.
A report by the Controller of Budget, Margaret Nyakang'o,has revealed that county governments continue to process personal emoluments through manual payrolls which is against the law.
The findings of a review of salary expenditures by counties, in the first quarter of the 2023/2024 financial year, has now raised questions about the commitment by the devolved units to enhance transparency.
Challenges associated with manual payrolls administration, have in the past seen billions of shillings of taxpayers’ money spent on ghost workers annually.
For instance, workers’ wages in Homa Bay County amounting to Sh240.85 million were processed through the manual payroll, which accounted for 27.1 percent of the total payroll cost.
"It is government policy that salaries should be processed through the Integrated Personnel and Payroll Database system. Counties are advised to fastrack the acquisition of personal numbers for their staff to facilitate use of the IPPD system, "Dr Nyakang’o said in the report.
In Homa Bay Sh647.8 million for salaries was processed through through the IPPD system.
Garissa County Government, during the year under review, processed salaries amounting to Sh143.8million through a manual payroll.
The devolved unit processed Sh 627.7million through the IPPD system, with the manual system accounting for 18.6 percent of the total wages.
In Wajir County, Sh88.21 million was processed through a manual payroll.
Most of the counties cited lack of personal numbers as the reason why staff salaries where not processed using the IPPD system.
Dr Nyakang’o has called on county governments to fast-track the acquisition of staff personal numbers.By using the manual systems, she said, counties contravened government policy on payment of wages.
The manual payroll, the Controller of Budget noted, is prone to abuse and may lead to the loss of public funds.
"County governments were required to have migrated to the Unified Human Resource Information System by October 1, 2022 in line with the guidelines by the Head of Public Service,” she said.
