During the launch of the FY 2026/27 Medium-Term Budget Preparation Process at Kenyatta International Convention Centre (KICC) on Monday, Treasury Cabinet Secretary (CS) Njuguna Ndung’u Mbadi issued a stern warning to county governments over the persistence of ghost workers and bloated wage bills.
Mbadi highlighted that several counties continue to resist integrating their payroll systems, insisting that waiting for other departments, such as MDAs, county assemblies, or county executives, was no longer acceptable. “When will they be ready?” he questioned, emphasizing that payroll integration was not optional but a mandatory requirement.
According to the CS, counties are spending an unsustainable average of 55 percent of their total revenue on salaries. This includes payments from both locally generated revenue and allocations from the national government, a practice he described as unlawful and financially imprudent. He revealed that many counties still maintain parallel manual, casual, and online payrolls, a loophole that has contributed to inflated wage bills and the inclusion of employees who should not be on the payroll.
“This practice has led to unnecessary duplication, waste of resources, and a bloated workforce,” Mbadi noted, stressing that the situation threatens county financial stability. He warned that counties must comply within 30 days to ensure proper accountability and resource management.
To enforce the directive, Mbadi tasked Treasury Principal Secretary Chris Kiptoo with overseeing the implementation of the new payroll integration measures. He explained that the reforms are critical to curbing ghost workers, streamlining wage bills, and addressing budget deficits.
The CS’s warning comes amid growing concerns over fiscal mismanagement at the county level, where inflated payrolls have increasingly strained local budgets and diverted funds from essential services. Mbadi’s push for integration aligns with the government’s broader objective of ensuring transparency, efficiency, and prudent financial management in devolved units.
County executives are now under pressure to reconcile their payrolls within the stipulated period or face scrutiny for non-compliance. The 30-day deadline underscores the national government’s commitment to eliminating ghost workers and promoting accountability in public spending.
