[Kenya] In breach of gov’t protocol counties paid Sh3 billion by manual payroll

[Kenya] In breach of gov’t protocol counties paid Sh3 billion by manual payroll
31 Jan 2024

In Kenya, the Controller of Budget (CoB) has flagged expenditure of more than Sh3 billion used to pay salaries in the counties using methods outside the approved payroll systems in the first quarter of the 2023/2024 financial year, Nation reports.

Counties are in the spotlight for paying salaries through the manual payroll system rather than the recommended Integrated Personnel and Payroll Database (IPPD) system.

A report by Margaret Nyakang'o - the Controller of Budget - has reportedly revealed that county governments continue to process personal emoluments through manual payrolls. A violation of the law.

The findings of a review of salary expenditures by counties, in the first quarter of the 2023/2024 financial year, have now raised questions about the devolved units’ commitment to enhance transparency.

Historically, challenges related to manual payroll administration have seen billions of shillings of taxpayers’ money spent on ghost workers annually.

For example, workers’ wages in Homa Bay County amounting to Sh240.85 million were reportedly processed through the manual payroll. This accounted for 27.1 per cent of the total payroll.

"It is government policy that salaries should be processed through the Integrated Personnel and Payroll Database system. Counties are advised to fast-track 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 Sh143.8 million through a manual payroll.

The devolved unit processed Sh627.7 million through the IPPD system. The manual system processed 18.6 per cent of the total wages.

In Wajir County, Sh88.21 million was reportedly processed through a manual payroll.

The majority of the counties reportedly cited a lack of personal numbers as the reason staff salaries were not processed using the IPPD system.

Dr Nyakang’o has called on county governments to fast-track the acquisition of staff personal numbers. In using the manual systems, she said, counties contravened government policy on payment of wages.

The Controller of Budget reportedly added that the manual payroll 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.


Source: Nation

(Quotes via original reporting)

In Kenya, the Controller of Budget (CoB) has flagged expenditure of more than Sh3 billion used to pay salaries in the counties using methods outside the approved payroll systems in the first quarter of the 2023/2024 financial year, Nation reports.

Counties are in the spotlight for paying salaries through the manual payroll system rather than the recommended Integrated Personnel and Payroll Database (IPPD) system.

A report by Margaret Nyakang'o - the Controller of Budget - has reportedly revealed that county governments continue to process personal emoluments through manual payrolls. A violation of the law.

The findings of a review of salary expenditures by counties, in the first quarter of the 2023/2024 financial year, have now raised questions about the devolved units’ commitment to enhance transparency.

Historically, challenges related to manual payroll administration have seen billions of shillings of taxpayers’ money spent on ghost workers annually.

For example, workers’ wages in Homa Bay County amounting to Sh240.85 million were reportedly processed through the manual payroll. This accounted for 27.1 per cent of the total payroll.

"It is government policy that salaries should be processed through the Integrated Personnel and Payroll Database system. Counties are advised to fast-track 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 Sh143.8 million through a manual payroll.

The devolved unit processed Sh627.7 million through the IPPD system. The manual system processed 18.6 per cent of the total wages.

In Wajir County, Sh88.21 million was reportedly processed through a manual payroll.

The majority of the counties reportedly cited a lack of personal numbers as the reason staff salaries were not processed using the IPPD system.

Dr Nyakang’o has called on county governments to fast-track the acquisition of staff personal numbers. In using the manual systems, she said, counties contravened government policy on payment of wages.

The Controller of Budget reportedly added that the manual payroll 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.


Source: Nation

(Quotes via original reporting)

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