Treasury Cabinet Secretary John Mbadi has directed all county governments to integrate their payrolls into the Integrated Payroll and Personnel Database (IPPD) within 30 days. He stated that the move is critical to eliminating ghost workers and improving financial accountability.
Mbadi addressed county resistance to payroll integration during the launch of the FY 2026/27 and Medium-Term Budget Preparation Process at the Kenyatta International Convention Centre. He clarified that waiting for county assemblies or executives to be ready is not a valid reason for delay.
The CS highlighted that counties spend an average of 55 percent of their revenue on salaries from both local sources and national allocations. He warned that this practice is unsustainable and diverts funds from essential development projects.
Mbadi criticized counties for running parallel payroll systems, including manual, casual, and online records. He said these gaps have inflated wage bills and allowed ineligible workers to remain on payrolls.
He further noted that some counties have unnecessarily expanded their workforce, creating duplication of roles that wastes public funds. Mbadi stressed that the payroll integration directive is mandatory and must be implemented within the 30-day deadline.
Treasury Principal Secretary Chris Kiptoo has been assigned to oversee the implementation of the payroll integration. Mbadi emphasized that proper execution of the directive will reduce ghost workers, enhance transparency, and address budget deficits.
In addition to payroll reforms, Mbadi instructed all ministries, departments, and state agencies to fully adopt the eProcurement system. He warned against reverting to paper-based procurement, which has been prone to inefficiencies and manipulation.
The Treasury’s focus on digital systems reflects the government’s commitment to accountability and responsible management of public funds. Mbadi concluded that counties and state agencies must comply swiftly to ensure proper financial discipline.
By Creatorhub