Public Service Cabinet Secretary Geoffrey Ruku has raised alarm over suspected payroll fraud of Ksh6.2 billion.
According to Ruku, government officers allegedly manipulate public systems and divert billions of shillings through irregular salary payments, allowances, and failure to remit statutory deductions.
This comes after a government payroll audit flagged irregularities totaling KSh6.2 billion, and on June 30, President William Ruto and Cabinet Secretaries ordered an investigation by the Directorate of Criminal Investigations (DCI).
How Officers Allegedly Manipulated Government Payroll Systems
Speaking during a public address on July 6th 2026 at Kenya School of Government, the CS called on the DCI to work with his ministry to investigate officers suspected of abusing the government payroll structure.
Also Read: Ruto Orders Nationwide Payroll Audit After KSh6.2 Billion Fraud Scandal in Government
He accused some human resources officers of colluding to process illegal payments disguised as salaries, allowances and other employment benefits.
According to Ruku, the alleged fraud involved double salary payments, duplicate arrears, irregular allowances, and failure to remit statutory deductions.
The government audit that triggered the investigations identified weaknesses in payroll, with a review of 12 out of 53 State Departments uncovering suspected irregularities worth KSh6.2 billion.
President William Ruto, together with the Cabinet Secretary then ordered an investigation by DCI.
“So I’m calling upon the director in charge of DCI that from tomorrow 2 PM, let’s work together to bring justice, to bring justice to the taxpayers of the Republic of Kenya because we can’t collect money through KRA, then fail to use that money prudently,” said Ruku
Ruku Clarifies on State Officers Tax Exemption
The CS revealed that some government officers had failed to remit statutory deductions, claiming they were exempt from doing so by the Kenya Revenue Authority (KRA).
Ruku has dismissed the claims that the officers are not exempt from remitting the KRA taxes.
“Some government officers abandoned within the human resource information system and collude on routing money in the name of allowances, emoluments and salaries, double payments of salaries, double payment of arrears, not remitting the statutory deductions and others not remitting statutory deductions because they claim that they are exempted by KERA whereas they are not exempted by KRA,” Ruku said.
He confirmed that the government, through directives by President William Ruto, will investigate officers who had used exemption claims to avoid statutory payments.
The payroll audit also highlighted data inconsistencies, including invalid KRA PINs, multiple identification details linked to individuals, shared bank accounts and questionable employee records.
Police Payroll and Interdicted Officers Among Areas Flagged
Ruku further pointed to suspected irregularities within the National Police Service, saying that some interdicted officers continued to receive salaries through questionable channels.
Also Read: Govt Clarifies Reports of Ruto Planning to Raid All SACCOs Countrywide
He claimed the government had evidence of cases in which salaries of affected officers were allegedly redirected to other accounts.
“People going for some police officers interdicted, that salary is going to a certain account and we have evidence as far as that is concerned,” he said.
The CS said the government would pursue those involved and recover any funds lost through manipulation of payroll systems.
The move follows a Cabinet directive instructing the DCI to investigate the suspected payroll fraud, identify individuals involved, recover lost public funds and strengthen controls within government payroll management.
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