The government has launched a physical verification exercise for civil servants as investigations into suspected KSh 6.2 billion in payroll irregularities continue amid potential mass layoffs.
Worker verification follows a payroll audit that identified suspected irregularities across government departments.
Among the irregularities are questionable employment records, shared bank accounts and salary payments involving missing or invalid bank details.
Headcount Exercise Amid Potential Mass Layoff
In a memo dated October 16, 2026, the Ministry of Education directed staff to report for the physical headcount from October 19 to October 22 at Jogoo House in Nairobi.
The staff will be required to produce their original national identity cards, KRA PIN certificates, first appointment letters, and current appointment letters.
“Following a recent payroll audit conducted in various state departments and counties by the State Department for Public Service and Human Capital, it has become necessary that a physical headcount of all employees on the payroll be conducted in all state departments,” part of the memo read.
The directive was issued by Secretary of Administration James Kianda on behalf of the Principal Secretary and circulated to heads of directorates for implementation.
According to the ministry, the headcount is intended to verify employees against official employment and payroll records.
During the exercise, the government will review discrepancies identified during an audit conducted by the State Department for Public Service and Human Capital Development.
The exercise also covers employees on authorised leave or those hospitalised.
In addition, employees who transferred services from TSC to the ministry will use the letter issued by the ministry as their 1st appointment letter.
On the other hand, newly appointed Quality Assurance and Standards Officers (QASOs) will have the same letters for their first and current appointments.
The ministry has warned employees that failing to undergo verification risks having their salaries stopped.
Also Read: 84 HR Officers Sent on 30-Day Mandatory Leave in Payroll Crackdown
Audit Flags Sucenters KSh 6.2 Billion Irregularities
The payroll investigation centres on suspected irregularities valued at KSh 6.2 billion identified in an audit sample covering 12 of 53 state departments.
“The decision follows a comprehensive Government payroll audit that uncovered widespread weaknesses in payroll governance. A sample audit of 12 of the 53 State Departments revealed suspected payroll irregularities amounting to Sh6.2 billion, exposing unauthorized alterations to payroll records, irregular payments, weak controls over statutory deductions, and fragmented payroll management and major oversight gaps,” the Cabinet dispatch noted.
Findings from the audit included employment records indicating that some individuals had allegedly been hired before they were born or while under the age of 18.
Auditors also flagged cases involving employees sharing bank accounts and salary payments processed without valid bank details.
Investigation into the payrolls followed a Cabinet directive issued on June 30, 2026, calling for the DCI to investigate suspected manipulation of the government payroll.
On July 8, Public Service Cabinet Secretary Geoffrey Ruku handed the DCI payroll audit reports and supporting documents to facilitate the investigation.
The audit also raised concerns about changes made to records in the Human Resource Information System-Kenya (HRIS-K).
A government briefing cited more than 4.7 million payroll-record changes attributed to 720 system editors without adequate audit trails.
Also Read: CS Mbadi Raises Proposed PAYE Tax Exemption Limit From KSh30,000
84 HR Officers Removed from Payroll Duties
The government has separately directed 84 human resource officers from the Kenya Prisons Service, Kenya Police Service and departments within the Ministry of Health to step aside for 30 working days.
In addition, the government has also withdrawn the officers’ access to the government payroll system as investigations into suspected irregularities continue.
“I have directed the revocation of payroll system user rights of 84 human resources officers and the implementation of mandatory 30-day leave to allow further forensic investigations of the identified irregular transactions that have potentially led to loss of public funds,” Ruku stated on October 16.
According to Public Service Cabinet Secretary Geoffrey Ruku, the action followed the submission of audit information to the Directorate of Criminal Investigations (DCI).
Follow our WhatsApp Channel and X Account for real-time news updates.
