Home / Kenya News / Kisumu spent Sh157m on ghost workers, says Ouko

Kisumu spent Sh157m on ghost workers, says Ouko

Kisumu county government spent Sh157 million in the 2016-2017 financial year to pay ghost workers, the latest report by the Auditor General says.

 This translates to Sh13 million every month that the county lost to individuals not captured in the official payroll generated from the county.

 Auditor General Edward Ouko’s report reveals that the lakeside county’s own payroll puts compensation of employees at Sh3,133,266,670 contradicting the financial statements figure of Sh 3,290,083,000. The county could not avail any supporting document for the over Sh150 million difference in staff pay.

 “The wage bill constitutes 42 per cent of the total receipts during the year. This is contrary to Public Finance Management Regulation 2015, section 107 ( 2 ) that recommends a maximum of 35 per cent,” Ouko said in his report.

Read: How Nairobi swindled billions – audit report 

Compared to the previous financial year, the basic salaries of permanent employees decreased by Sh705,612,388 and temporary employees shot up by Sh456,342 while personal allowance paid as part of salary also climbed by Sh845,346,160. 

According to Ouko, the variances were not explained despite the county recruiting 167 new permanent employees into the workforce during the year under review. The hiring of staff was also found to be heavily tribal pointing to ethnic bias.

 “The payroll statistics revealed that 97 per cent of the employees were from the dominant ethnic community of Kisumu county. This is contrary to the National Cohesion and Integration Commission Act, 2008,” the reports states.

Read: Millions lost by counties, says Auditor General

 Section 7 ( 1 ) of the Act requires that all public establishments to observe that not more than one-third of staff is from the same ethnic community. Ouko also questioned Sh73,994,193 the county burnt in domestic travels and subsistence out of which Sh18,921,055 was not supported by any document. 

In foreign travels, Kisumu spent Sh7,999,121 but could not produce supporting documents.

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