Ruto orders payroll fraud probe amid a ballooning wage bill

President William Ruto has ordered a probe aimed at eliminating entrenched payroll fraud, tightening oversight of the public wage bill and protecting taxpayers' money. Ruto, who chaired a Cabinet meeting on Tuesday, said the decisions followed a government payroll audit that exposed widespread weaknesses in payroll management across public institutions. "A sample review of 12 out of the 53 State Departments uncovered suspected payroll irregularities worth Sh6.2 billion, including unauthorised alterations to payroll records, irregular payments, weak controls over statutory deductions and fragmented payroll systems," the memo from the Cabinet read in part. The Cabinet directed the Directorate of Criminal Investigations (DCI) to investigate the fraud, verify personal numbers used in payroll processing, dismantle criminal networks manipulating government payroll systems, recover lost public funds and prosecute all those found responsible. To prevent future abuse, Cabinet approved a comprehensive payroll reform programme that includes a government-wide audit of all State Departments and public institutions. "This will also include mandatory migration of ministries, departments, agencies and state corporations to the revamped Integrated Human Resource and Payroll System, enhanced cybersecurity measures, payroll data cleansing and validation," the brief added. In a separate cost-cutting measure, Cabinet froze the leasing or hiring of additional office space pending an audit of government office utilisation and the development of a programme to renovate and optimise existing public offices. El Ni o preparedness At the same time, the Cabinet also established a Standing Cabinet Committee on Artificial Intelligence to oversee Kenya's national AI strategy, coordinate policy implementation and position the country as a regional leader in responsible artificial intelligence development. "The committee will promote AI-driven innovation, productivity, job creation, public service delivery and inclusive economic growth while ensuring appropriate governance and safeguards," the brief stated. To boost digital employment, Cabinet adopted the National Business Process Outsourcing (BPO) Policy, which aims to position Kenya as a leading global outsourcing destination by leveraging its skilled English-speaking workforce, favourable time zone and expanding digital infrastructure. The policy seeks to attract international investment, create thousands of jobs and increase Kenya's share of the global BPO market, projected to surpass Sh68 trillion by 2030. To prepare for anticipated climate-related disasters, Cabinet established an Ad Hoc Cabinet Committee on El Ni o Preparedness and Response, chaired by Deputy President Kithure Kindiki. Stay informed. Subscribe to our newsletter