Auditor General Nancy Gathungu has raised serious concerns over alleged irregularities in the hiring and promotion processes at the Central Bank of Kenya (CBK). In her latest audit report, Gathungu revealed that hiring managers at the regulator may have overlooked mandatory experience and service requirements during recruitment exercises.
“There were instances during the recruitment processes where shortlisted or successful candidates did not fully meet the mandatory experience or service period requirements even though they were previously acting in the positions they were subsequently appointed to,” Gathungu noted.
The Auditor General also accused CBK’s human resource managers of failing to consult the Salaries and Remuneration Commission (SRC) when determining staff salaries and benefits a violation of established legal frameworks.
“Non-adherence to internal human resources policies was noted in staff promotions, specifically concerning placement on salary scales and promotions to non-succeeding grades,” she added.
Gathungu further highlighted cases of mishandled staff promotions, irregular secondments to other state agencies, and failure to reimburse related costs. According to her, these practices expose the Central Bank to potential financial losses and legal disputes.
Additionally, the regulator reportedly operated for an entire year without a full board of directors, which disrupted the composition and effectiveness of critical committees within the institution.
This revelation comes amid growing national scrutiny of public institutions over alleged HR malpractices. Just a month earlier, the Agriculture and Food Authority (AFA) was accused of favouring certain ethnic groups during recruitment. Appearing before the National Assembly Committee on Cohesion and Equal Opportunities, AFA Director General Bruno Linyiri admitted the authority lacked a formal HR manual since inception.
The Auditor General’s findings at CBK now amplify calls for stricter oversight and compliance with HR and governance laws to ensure transparency and fairness in public sector recruitment.
