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The Cabinet has approved sweeping reforms to dismantle what it described as decades-old payroll fraud across government after an audit uncovered suspected irregularities worth Sh6.2 billion.
The reforms, approved at a Cabinet meeting chaired by President William Ruto at State House, Nairobi, include a government-wide payroll audit, criminal investigations and the migration of all public institutions to a revamped payroll management system.
A sample audit of 12 out of 53 State departments uncovered unauthorised alterations to payroll records, irregular payments, weak controls over statutory deductions, fragmented payroll management and major oversight gaps.
The Directorate of Criminal Investigations was directed to investigate the fraud, verify personnel numbers used in payroll processing, recover lost public funds and prosecute those found responsible.
