Ten counties on the spot for illegally paying Sh15 billion in manual payroll wages

cash

Baringo wages amounting to Sh115.3 million were processed through the manual system.

Photo credit: File | Nation Media Group

Ten counties are under scrutiny for paying wages amounting to more than Sh15 billion through manual payrolls.

This is against the recommended Integrated Personnel and Payroll Database(IPPD) system, says a report by the Controller of Budget.

Bomet County paid Sh1.24 billion in wages through the manual system, said Controller of Budget Margaret Nyakang'o in a report for the 2021/2022 financial year.

Other counties with the highest wage payments made through the manual system include Nakuru (Sh1.06 billion), Garissa (Sh1.03 billion), Vihiga (Sh934.89 million), Siaya (Sh792.55 million), Kiambu (Sh776.11 million), Homa Bay (Sh694.33 million), Laikipia (Sh646.68 million), Kisumu (Sh515.30 million), Murang'a (Sh504.12 million) and Bungoma (Sh214 million).

Baringo wages amounting to Sh115.3 million were processed through the manual system and accounted for 3.3 per cent of the total payroll cost.

"It is government policy that salaries should be processed through the Integrated Personnel and Payroll Database(IPPD) system. Counties are advised to fast-track the acquisition of personal numbers for their staff to facilitate the use of the IPPD system,” the report recommended.

The Bungoma government processed salaries amounting to Sh214.92 million through a manual payroll.

The devolved unit processed Sh4.8 billion through the IPPD system, with the manual system accounting for 4.3 per cent of the total wages.

In neighbouring Busia, Sh109.8 million was processed through a manual payroll, putting the payroll at risk of abuse and loss of public funds.

Others that used the illegal manual system include Isiolo (Sh21.6 million), Kajiado (Sh13.01 million), Kakamega (Sh317.36 million), Kericho (Sh343 million), Kilifi (Sh290 million) and Kirinyaga (Sh141.77 million).

Most of the counties cited a lack of personal file numbers for their staff as the reason for failing to process all salaries in the IPPD system.

Ms Nyakang'o proposed that county governments fast-track the processing of staff personal numbers to ensure the entire wage bill is processed through the prescribed system.

The manual payroll, she noted, is prone to abuse and may lead to loss of public funds due to a lack of proper controls.

"County governments are 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," the report said.

The electronic payroll seeks to end the practice of corrupt officials claiming salaries on behalf of "ghost employees".

In 2014, a preliminary audit of the public service payroll revealed that Kenyan taxpayers were losing more than Sh1.8 billion annually in salary payments to ghost workers.