Govt Cracks Down on Ghost Workers After Ksh 6.2 Billion Payroll Scam Exposed

The government has approved a series of reforms which are aimed at dismantling long-standing payroll fraud in government, following an audit that uncovered widespread weaknesses in payroll management and governance.

The decision was made during a Cabinet meeting chaired by President William Ruto at State House, Nairobi, on June 30, 2026.

According to the Cabinet, the reforms are intended to restore integrity to the public wage bill, protect taxpayers’ money and strengthen accountability across government institutions.

The move follows a comprehensive government payroll audit, which identified suspected payroll irregularities amounting to Ksh 6.2 billion in a sample audit of 12 out of the country’s 53 State Departments.

Payroll Records

According to the Cabinet, the audit revealed unauthorised alterations to payroll records, irregular payments, weak controls over statutory deductions, fragmented payroll management systems and significant oversight gaps.

To address these issues, the Cabinet directed the Directorate of Criminal Investigations (DCI) to investigate the reported payroll fraud and also to verify personal identification numbers that were used in payroll processing.

Also Read: Nyamira County Assembly Deputy Clerk Arrested

The DCI has also been tasked with dismantling the criminal networks suspected of manipulating government payroll systems, recovering lost public funds and ensuring the immediate arrest and prosecution of individuals found culpable.

In addition to criminal investigations, the Cabinet approved the immediate implementation of a comprehensive payroll reform programme across the public sector.

Government Audit

The reforms include conducting a government-wide audit covering all remaining State Departments and public institutions, as well as requiring all ministries, departments, agencies and state corporations to migrate to the newly revamped Integrated Human Resource and Payroll System.

The programme will also focus on strengthening cybersecurity measures, cleansing and validating payroll data, establishing a disaster recovery site and integrating payroll systems with other public financial management systems.

Also Read: 7 Beauty Trends Taking Over Nairobi That Everyone Is Talking About

The Cabinet said the reforms are intended to eliminate systemic weaknesses that have enabled payroll fraud over the years while improving transparency, efficiency and accountability in the management of public funds.

The government maintains that the measures form part of a broader effort to safeguard public resources, improve governance and ensure that only legitimate public servants receive salaries through the government payroll system.

Follow our WhatsApp channel for instant news updates

Cabinet meeting at State House Nairobi PHOTO/Ruto X