At the heart of Kenya’s devolved governance lies a scandal that refuses to die: ghost workers. Treasury Cabinet Secretary John Mbadi’s ultimatum to counties to integrate their payroll systems into the Integrated Payroll and Personnel Database (IPPD) within 30 days has once again thrust this issue into the national spotlight. But just how deep does this rot go? An exclusive investigation reveals a tangled web of cartels, politics, and billions of shillings lost to fraud.
The Billion-Shilling Black Hole
When devolution was rolled out in 2013, Kenyans expected efficient, people-centered governance. Yet, more than a decade later, counties are hemorrhaging funds on salaries—some of which go to people who do not exist.
According to Treasury data seen by this publication, counties spend an average of 55% of their total revenue on salaries, far exceeding the legal ceiling of 35% prescribed under the Public Finance Management Act. This translates to billions that could otherwise fund hospitals, water projects, or roads.
Insiders at the Council of Governors (CoG) admit privately that ghost workers have become an entrenched system, feeding politicians, rogue HR officers, and payroll managers. “Some counties keep three payrolls: manual, online, and casual,” revealed a senior Treasury source who requested anonymity. “This is how ghost names keep resurfacing even after so-called headcounts.”
How Ghosts are Created
Interviews with whistleblowers from Kisumu, Nairobi, and Garissa reveal a shocking trend:
Dead Employees Still Paid: In Siaya, a former HR officer confessed that names of deceased workers remained on payroll for up to two years, with relatives and officials sharing the loot.
Parallel Payroll Systems: Some county finance systems are deliberately kept offline or not synced with the IPPD, creating loopholes for manipulation.
Political Reward Schemes: After elections, governors allegedly insert campaign loyalists into payrolls without any workstations. “You’ll find a driver earning KSh120,000 because he campaigned for the governor,” says an official from Western Kenya.
Resistance and Cartels Fighting Back
Mbadi’s directive is bold—but will it work? The CS warned counties against resisting IPPD integration, yet resistance is already underway. Our investigation shows why:
Cartels Benefit from Chaos: Payroll manipulation is a lucrative business. Some officers charge bribes to “fix” salaries or reinstate names after audits.
Political Interests: In election years, inflated payrolls become a campaign war chest.
Weak Enforcement: Past attempts to digitize payroll have stalled because Treasury lacks prosecutorial teeth, while EACC investigations take years.
A leaked internal memo from a county in the Rift Valley warns staff to “prepare for Nairobi auditors,” signaling that some counties may comply only on paper.
While ghost workers thrive, real workers suffer. In Turkana, health workers staged protests last month over three months of unpaid salaries. Yet the county payroll showed more than 400 ‘employees’ in health services who could not be traced physically.
“The tragedy is that while fake names eat millions, real nurses beg for their dues,” says Kenya Union of Clinical Officers official Peter Odhiambo.
Treasury’s Digital Offensive
The IPPD is not new. It was first rolled out in 2014 but faced sabotage. Now, Mbadi has given counties 30 days to comply or risk sanctions, including withholding disbursements.
He has tasked Principal Secretary Chris Kiptoo to lead the exercise, alongside a multi-agency team that includes the EACC and the Office of the Auditor-General.
The system, when fully integrated, will:
Eliminate Multiple Payrolls: All employees will have a single record verified by biometric data.
Flag Duplicate Bank Accounts: Linked to national ID and KRA PIN, closing gaps exploited by fraudsters.
Enable Real-Time Monitoring: Treasury can track payroll changes instantly.
Political Earthquake Ahead?
Experts predict a political storm if Mbadi enforces his directive. Governors facing re-election may resist exposing payroll fraud that implicates their allies. Already, whispers in county corridors suggest some will lobby the CoG to challenge Treasury’s move in court, citing “autonomy.”
Public finance analyst Kevin Wanjala says: “This is a make-or-break moment for devolution. If Treasury succeeds, billions will be saved. If they fail, ghost workers will bury counties in debt.”
As the 30-day countdown ticks, the question remains: Will counties comply—or will ghosts continue to haunt Kenya’s payrolls?
For now, Mbadi’s war is on paper. Whether it translates into action depends on political will, institutional integrity, and a public ready to demand accountability.
Ghost Worker Hotspots (Based on 2024 Auditor-General Reports)
Nairobi County: 2,100 unverified workers
Kakamega County: 1,200 suspected ghosts
Garissa County: Payroll anomaly of KSh89 million
What You Can Do:
Report payroll irregularities to EACC hotline: 1551
Verify county budgets on www.treasury.go.ke
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