Illegal hirings and allowances persist in counties as wage bills rise

County governments are on the spot after fresh audit reports revealed widespread disregard for the guidelines by the Salaries and Remuneration Commission to tame the ballooning wage bill.

The devolved units are accused of illegal hirings, irregular payment of allowances, including double payments, and maintaining bloated wage bills that continue to drain public resources.

The latest reports by Auditor-General Nancy Gathungu for the financial year ending June 30, 2025, expose deep-rooted human resource management failures across many counties.

The findings show how counties have ignored SRC circulars on payment of wages and allowances while engaging in questionable recruitment of casual workers, some of whom cannot be accounted for.

According to the audit reports, many counties are spending far beyond the legally recommended ceiling of 35 per cent of their revenues on personnel emoluments, with some counties allocating nearly double the threshold.

The ballooning wage bills have been blamed on irregular recruitment, manual payroll systems prone to manipulation, retention of officers beyond retirement age and payment of allowances to ineligible staff.

The reports also show that some counties have declined to adopt the Integrated Payroll and Personnel Database (IPPD), a system introduced to curb payroll fraud.

Instead, they continue to rely on manual payroll systems, exposing public funds to potential manipulation and misappropriation.

In Bomet, auditors flagged irregular payments amounting to millions of shillings, including Sh2.46 million paid as extraneous allowances to 131 employees who were not entitled to the benefits.

The county also paid special salaries amounting to Sh2.88 million to 17 officers who had already received their basic salaries and allowances totalling Sh9.2 million, resulting in double payments.

Additionally, Bomet paid practising allowances amounting to Sh1.18 million to 36 officers who were not eligible. The county was also cited for overpaying basic salaries to 83 workers by Sh15.52 million.

The audit also revealed that 27 officers, who collectively earned Sh3.07 million during the financial year, had already surpassed the mandatory retirement age of 60 years but remained on the county payroll.

Bomet was also criticised for irregular recruitment, uncontrolled hiring of casual workers, and questionable promotion practices.

In Baringo, the auditor raised concerns over irregular payment of extraneous allowances to 55 employees without approval from the relevant authorities.

The county was also faulted for hiring casual workers without justification and spending Sh94.62 million on their wages.

“There were no approvals by the County Public Service Board authorising departments to recruit casual workers,” the report states, raising questions about oversight and accountability in employment processes.

Siaya also came under scrutiny after it emerged that a staffer at the Siaya County Referral Hospital was simultaneously paid as a casual worker and as a permanent and pensionable employee, resulting in double payment of salaries.

The auditor attributed the anomaly to weak payroll controls and lack of reconciliation mechanisms.

The county was also accused of paying excess allowances totalling Sh22.33 million to several officers beyond their approved job grade entitlements.

Additionally, Siaya was flagged for overstaffing, exceeding its required workforce by 273 employees.

The audit also revealed that 449 employees lacked personal identification numbers, contrary to public service regulations.

In Homa Bay, nine employees had acted in senior positions for more than six months while continuing to draw acting allowances amounting to Sh836,978, contrary to employment regulations that limit acting appointments.

Kakamega was criticised for failing to comply with diversity requirements, with auditors noting that 94 per cent of employees originate from one ethnic community.

The county’s wage bill stands at 49 per cent of its revenue, far above the recommended limit.

Some 467 employees were found to be earning less than one-third of their basic salaries, raising concerns over labour practices and compliance with employment standards.

Busia county’s wage bill was flagged at 48 per cent of total revenue.

The audit also revealed that 17 employees have remained on probation for more than 12 years, violating Section 42(2) of the Employment Act, 2007, which limits probation periods to six months, extendable by another six months with the employee’s consent.

Machakos emerged as one of the worst offenders, spending 60 per cent of its revenue on personnel emoluments, nearly double the legally recommended threshold.

The excessive spending raises concerns about the sustainability of county operations and service delivery.

Kitui was cited for processing salaries amounting to Sh4.59 million through manual payroll systems, while Kajiado irregularly paid casual workers Sh9.65 million without evidence that the individuals rendered any services.

The auditor further noted that there was no proof that the County Public Service Board approved their engagement.

In Kiambu, auditors flagged irregular payments amounting to Sh5.68 million to police officers deployed to guard executive officers despite the officers already receiving salaries from the National Police Service under the Ministry of Interior.

“Further, it was noted that the police officers were paid monthly, casting doubt on the regularity of the payments given that they were already considered full-time employees and therefore paid their full salaries by the National Police Service,” the report states.

Kiambu was also cited for irregular engagement of casual workers, paying them Sh335.7 million in wages.

Kirinyaga’s wage bill stood at 43 per cent of its revenue, with the county similarly flagged for irregular hiring of casual workers. In Mombasa, the wage bill hit 45 per cent of revenue, exceeding the recommended threshold.

Wajir was faulted for irregularly engaging 528 casual workers for periods exceeding three months, contrary to labour regulations.

The county also failed to remit Sh732.61 million in statutory deductions related to employee benefits, raising concerns about potential violations of labour and pension laws.

The auditor’s findings paint a troubling picture of widespread disregard for employment regulations across counties, with the irregular practices contributing to ballooning wage bills and loss of public funds.

The revelations are likely to intensify scrutiny of county administrations, placing governors and senior officials under pressure to institute reforms and enforce compliance with public service laws.

Experts warn that unless counties streamline recruitment processes, adopt automated payroll systems and adhere to SRC guidelines, the growing wage bills could cripple service delivery and derail the gains of devolution.