County governments have continued to lose billions of shillings through payroll fraud linked not only to fictitious employees but also to what auditors describe as non-apparent ghost workers.
These are real public officers whose pay records contain duplications or irregular entries that result in unlawful salaries, allowances, or pension payments.
Unlike conventional ghost workers, who are completely non-existent, non-apparent ghost workers are legitimate employees who exploit weak payroll controls. Public finance audits show that some earn multiple salaries across departments, receive pay above their approved job grades, remain on payroll while on prolonged leave, or continue earning after retirement or exit from service.
County human resource audits indicate that such irregularities are often enabled by fragmented payroll systems and weak verification processes. In several cases, staff have been paid outside the Integrated Personnel and Payroll Database, increasing the risk of duplication and manipulation.
Audit findings reveal scale of losses
The financial impact is reflected in county-level audit reports. In Vihiga County, a human resource audit found that 426 employees could not be traced at their duty stations, yet were earning salaries. The county was losing approximately Sh32 million every month in payments linked to ghost workers.
In Kericho County, the Auditor-General flagged 1,955 employees who had not been assigned personal numbers and were paid outside the official payroll system. The audit warned that the absence of unique identifiers exposed the county to payroll fraud and potential loss of public funds.
Lamu County’s third human resource audit in 2022, which covered 1,693 employees across more than 100 work stations, identified 112 names on the payroll that could not be accounted for, despite ongoing salary and benefits payments.
Nyamira County faced scrutiny after Sh2.8 billion was allegedly paid to 736 ghost workers during the 2018/2019 financial year. County leadership was summoned before the Senate to explain the existence of the employees and the payroll losses.
In Laikipia County, efforts to rein in payroll costs led to the dismissal of 176 workers after the wage bill rose to 58 percent of total expenditure, far above the 35 percent ceiling set by the Public Finance Management Act, 2012.
Why the problem persists
Public Financial Management reform documents link the persistence of non-apparent ghost workers to weak integration of human resource information systems and poor enforcement of staffing norms. The reforms recommend consolidating payroll and HR systems, enforcing integrated salary controls, and strengthening audits to improve accountability and protect public funds.
