The World Bank has backed reforms targeting Kenya’s government payroll as the National Treasury moves to strengthen public sector efficiency and improve management of government finances.
Treasury Cabinet Secretary John Mbadi on Wednesday met World Bank Regional Practice Director Hassan Zaman and Qimiao Fan, the World Bank’s Divisional Director for Kenya, Rwanda and Somalia, to review the implementation of the Eighth Development Policy Operation (DPO 8).
The meeting focused on progress in implementing reforms under DPO 8, the third and final phase of the current programme series supported by the World Bank.
World Bank Backs Payroll Overhaul for Kenya Government Employees
A key area under the reforms is the management of government employees, with the programme seeking to harmonize human resource and payroll data across national and county governments as well as other public institutions.
The reforms will also introduce unified payroll numbers and involve cleaning up county payrolls based on findings by the Office of the Auditor-General.
The measures aim to improve payroll integrity and strengthen the management of public resources across government.
“Harmonizing HR and payroll data across national and county governments and other public institutions. Improving payroll integrity through unified payroll numbers and cleaning of county payrolls based on Office of the Auditor-General findings,” Treasury said.
Beyond the payroll changes, the World Bank-backed programme covers a wider range of reforms intended to strengthen Kenya’s fiscal position and create an environment for sustainable economic growth.
The reform agenda includes strengthening fiscal discipline and fiscal consolidation, improving the education system and creating a better business environment to support investment and private-sector growth.
The programme also targets intergovernmental fiscal management, including the timely approval and disbursement of additional allocations to county governments.
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Climate action is another area covered under DPO 8, with the reforms seeking to strengthen climate-responsive policies and institutions.
Mbadi said the National Treasury would continue working with the World Bank and implementing ministries, departments and agencies to fast-track the remaining reforms.
The Treasury will also seek to address implementation bottlenecks and ensure that the agreed actions are delivered within the DPO 8 timeframe.
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KSh6.2 Billion Payroll Fraud, 17,000 Suspected Ghost Workers
The payroll reforms come amid the government’s continued efforts to strengthen public expenditure management and improve accountability in the use of public funds.
It also comes against the backdrop of concerns over irregularities in the management of public sector employees.
A forensic audit previously identified suspected payroll fraud valued at KSh6.2 billion across national and county governments.
Investigators also found cases involving ghost employees, forged records, multiple salary payments and questionable banking details.
Government figures have indicated that more than 17,000 suspected ghost workers were identified across different public institutions.
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