Forty of Kenya's county governments processed more than KES 1.52 billion in salaries through manual systems in a mere three-month period, deliberately sidestepping the official government payroll platform. This move, flagged in a startling report by Controller of Budget (CoB) Dr. Margaret Nyakang'o, exposes devolved units to significant risks, including the potential payment of 'ghost workers' and outright theft of public money.

The revelation casts a harsh spotlight on the persistent financial indiscipline within county administrations. By avoiding the Integrated Personnel and Payroll Database (IPPD), a system designed to ensure transparency and accountability, these counties are operating in a grey area that complicates oversight. Dr. Nyakang'o has repeatedly warned that manual payrolls are prone to abuse and may lead to the loss of taxpayer funds, a concern echoed by the Auditor-General in past reports.

Top Spenders and Systemic Failures

The CoB's budget implementation review for the first quarter of the 2025/2026 financial year identifies Nairobi, Nyeri, Siaya, Elgeyo Marakwet, and Nakuru as the biggest culprits in this payroll deviation. The practice is often fueled by the need to pay thousands of casual staff and provide top-up allowances for security personnel, whose details are frequently not onboarded onto the official IPPD system. This is not a new issue; in the fiscal year ending June 2022, a staggering KES 15 billion was paid out through these unregulated manual systems.

The IPPD system was introduced precisely to curb such irregularities, replacing clumsy manual processes that were notorious for pay delays and poor record-keeping. Government policy explicitly mandates its use for all public sector salary payments. However, many counties claim the lack of staff personal numbers prevents them from fully complying, an explanation the CoB has urged them to rectify swiftly. In stark contrast, six counties—Baringo, Migori, Nyamira, Trans Nzoia, Uasin Gishu, and West Pokot—were lauded for their strict adherence to the approved system.

A Pattern of Financial Mismanagement

This payroll scandal is symptomatic of a broader challenge of financial mismanagement plaguing many devolved units. Beyond irregular salary payments, the Controller of Budget and Auditor-General have consistently flagged other issues:

• Bloated Wage Bills: Many counties spend far more than the 35% of total revenue legally permitted on employee compensation, squeezing funds for development projects.
• Delayed Salaries: Despite receiving funds from the National Treasury, numerous counties have been cited for failing to pay employees on time, causing significant hardship for workers.
• Irregular Recruitment: Reports have exposed counties hiring staff without approved vacancies and retaining employees past the mandatory retirement age.

These persistent problems undermine the core promise of devolution: bringing services and development closer to the people. When the bulk of a county's budget is consumed by a questionable wage bill, it directly impacts the citizen's access to better healthcare, roads, and economic opportunities.

The Way Forward

The Council of Governors has, in the past, defended counties by citing delays in fund disbursement from the National Treasury as a primary cause for financial difficulties. However, the deliberate use of manual payrolls points to a deeper issue of governance and accountability. Dr. Nyakang'o's report serves as a critical call to action for county assemblies, anti-corruption agencies, and the Senate to enforce compliance and safeguard public resources. For the Kenyan citizen, the KES 1.52 billion question remains: is their money paying for essential services or lining the pockets of a few through flawed systems? The answer will determine the future of devolution itself.