Widespread Corruption Uncovered

NAIROBI – The Kenyan government is losing billions of shillings annually through a sophisticated and widespread payroll fraud scheme involving ghost workers, illegal allowances, and manipulation of employee records, Public Service Cabinet Secretary Geoffrey Ruku revealed on Monday, November 3, 2025. An internal audit across government ministries and county governments has exposed a deeply entrenched network of corruption allegedly orchestrated by rogue human resource managers in collusion with other officials.

The fraudulent activities detailed by the CS include paying salaries to deceased individuals, civil servants long past the mandatory retirement age, and non-existent 'ghost' workers. Other schemes involve irregular promotions that place staff in higher salary brackets without due process, granting of illegal tax exemptions, and payment of double allowances. "We have reports that some civil servants are earning double allowances, while others have been exempted from paying taxes, and this is costing the government billions of shillings," Mr. Ruku stated, as reported by the Daily Nation on Wednesday, November 5, 2025.

The Scale of the Problem

While the full financial impact is still under investigation, the scale of the issue is significant. A Public Service Commission (PSC) report from early 2025 indicated that over 17,000 ghost workers were on the national government's payroll, with ministries accounting for the largest share at 12,329. This systemic issue has been a persistent drain on public finances for years. A 2014 biometric registration exercise had previously unearthed and removed 12,000 ghost workers from the system.

The problem extends deep into the 47 county governments. A recent review by Auditor-General Nancy Gathungu revealed that at least 11 counties retained hundreds of employees past the mandatory retirement age of 60. Previous audits have exposed glaring irregularities, such as Nakuru County paying KES 36.16 million to 77 retirees and a case in Homa Bay County where 52 employees were found to be sharing a single bank account.

Government Launches Nationwide Crackdown

In response to the audit's findings, the Ministry of Public Service has launched a nationwide crackdown targeting the corrupt officials, particularly HR personnel, believed to be at the center of the schemes. CS Ruku announced that the operation, which began in October 2025, is being conducted in close collaboration with the Ethics and Anti-Corruption Commission (EACC) and the Director of Public Prosecutions (DPP). "We will be working very closely with the EACC to ensure taxpayers' money is protected and that the public service becomes a model of merit, not a haven for corruption," Ruku affirmed in a statement reported on October 13, 2025.

Those found culpable face immediate dismissal from public service and prosecution. The crackdown will focus on four key areas: payroll fraud, ghost workers, irregular promotions, and illegal allowances.

Digital Reforms to Seal Loopholes

To permanently address the crisis, the government is accelerating the implementation of digital systems to enhance accountability and seal loopholes. CS Ruku confirmed the development of a new digital application to capture all work situations and monitor civil service productivity and attendance. This platform is expected to be operational by the end of September 2025.

Furthermore, the Treasury announced in July 2025 that a centralized, unified payroll system for all public servants was expected to roll out in August 2025. This system is designed to eliminate duplicate salary payments and make it easier to detect anomalies. These technological reforms are part of President William Ruto's broader anti-corruption agenda, aimed at restoring integrity and efficiency in public service.

Implications for Kenya

The siphoning of billions of shillings through payroll fraud places a severe strain on Kenya's national budget, diverting funds from essential public services such as healthcare, education, and infrastructure development. It also inflates the public sector wage bill, which has been a long-standing concern for fiscal sustainability. Beyond the financial losses, the scandal erodes public trust in government institutions and undermines morale among the majority of honest and hardworking civil servants. The success of the ongoing crackdown and the implementation of robust digital safeguards will be critical in determining the government's ability to curb corruption and ensure that public funds are used for the benefit of all Kenyans.