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the-star.co.ke·2 min read·medium

Inside state’s multi-billion shilling ‘ghost’ workforce and off-payroll fraud

Inside state’s multi-billion shilling ‘ghost’ workforce and off-payroll fraud
✦AI Summary

Taxpayers in Kenya are losing billions annually due to a 'ghost' workforce and payroll fraud, stemming from forged academic certificates, off-payroll payments, and delayed digital reforms. A suspected Sh6.5 billion fraud is under investigation, highlighting persistent weaknesses in public service personnel management and contributing to Kenya's high public wage bill.

Why it matters

This exposes significant corruption and inefficiency in Kenya's public sector, draining public finances, hindering service delivery, and undermining government efforts to control its budget and improve governance.

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The Public Service Commission headquarters along Harambee Avenue in Nairobi /FILE

Taxpayers continue losing billions annually to ghost workers despite the government's efforts to cut its wage bill, new evidence shows.

Fresh data by the government has unmasked how forged academic certificates, off-payroll salary payments and delayed digital reforms continue to bleed state coffers.

The revelations come as detectives investigate a suspected Sh6.5 billion payroll fraud, highlighting long-standing weaknesses in personnel management that have persisted despite repeated government promises to clean up the public service.

An analysis of the latest Public Service Commission (PSC) evaluation paints the picture of a government payroll system riddled with loopholes, weak oversight and fragmented human resource management systems that continue to nurture fraud.

The findings also reignite the debate on Kenya's expanding public wage bill, which has remained one of the country's biggest fiscal challenges.

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