Ruto Cabinet Orders Nationwide Investigation Into KSh6.2 Billion Payroll Theft
The government has launched a sweeping crackdown on alleged payroll fraud across the public service after an audit uncovered an estimated KSh6.2 billion in irregular payments, prompting the Cabinet to order immediate criminal investigations and prosecutions.
During its Tuesday sitting chaired by President William Ruto, the Cabinet directed the Directorate of Criminal Investigations (DCI) to launch an urgent probe into payroll management across ministries, state departments, and government agencies. Investigators have been tasked with identifying everyone involved in the alleged scheme, dismantling the criminal networks behind the fraud, recovering stolen public funds, and ensuring that all those found culpable are arrested and prosecuted.
According to a Cabinet dispatch, the findings emerged from a comprehensive payroll audit conducted on 12 of the government’s 53 state departments, exposing what officials described as widespread theft of public funds through fictitious payments and systematic manipulation of payroll systems.
The audit reportedly uncovered numerous irregularities, including unauthorized alterations of payroll records, illegal salary payments, weak controls over statutory deductions, fragmented payroll management systems, and significant oversight failures that created opportunities for fraudulent activities. The findings have raised fresh concerns about the integrity of public payroll systems and the management of Kenya’s growing public wage bill.
In response, the Cabinet has ordered the DCI to verify personal numbers used in payroll processing, investigate fraudulent salary payments, and identify individuals who may have exploited weaknesses in the payroll system to siphon billions of shillings from taxpayers. Authorities have also been instructed to recover all public funds lost through the fraudulent scheme.
Beyond criminal investigations, the government has announced a comprehensive payroll reform programme aimed at preventing future abuse. Cabinet directed that audits be extended to all remaining state departments, ministries, agencies, and public institutions to determine the full extent of payroll irregularities across government.
As part of the reforms, all ministries, departments, agencies, and state corporations will be required to migrate to the newly revamped Integrated Human Resource and Payroll System (IHRPS). The centralized platform is expected to improve payroll management, strengthen oversight, eliminate duplicate records, and reduce opportunities for fraud through enhanced monitoring and accountability.
The payroll reforms form part of broader government efforts to strengthen public financial management and enhance transparency in the use of public resources. The latest revelations are expected to intensify calls for stronger oversight mechanisms within government institutions, particularly as concerns continue to grow over the country’s public wage bill and accountability in public spending.
During the same Cabinet meeting, members also approved several major development initiatives, including the KSh26 billion Judicial Performance Improvement Project Phase II, which will be implemented in partnership with the World Bank. The project will finance the construction of a new Supreme Court complex, a dedicated Court of Appeal building, a consolidated tribunals and judiciary administration complex, and a modern Kenya Judiciary Academy aimed at improving access to justice and strengthening judicial efficiency.
The government says the ongoing reforms, coupled with the crackdown on payroll fraud, are intended to enhance accountability, protect public resources, and improve service delivery across the public sector.
