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DCI Takes Over Investigation Into Alleged KSh6.2 Billion Public Payroll Fraud

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The Directorate of Criminal Investigations> (DCI) has officially taken over investigations into the alleged theft of approximately KSh6.2 billion through the government’s public service payroll system, following the handover of audit and forensic investigation reports by the Ministry of Public Service.

Public Service Cabinet Secretary Geoffrey Ruku, accompanied by Principal Secretary Jane Imbunya, presented the payroll audit report, 14 forensic investigation reports, and other supporting documents to DCI Director Mohamed Amin to facilitate the launch of criminal investigations.

The audit, which examined 12 out of 53 government departments, uncovered multiple irregularities believed to have resulted in losses amounting to KSh6.2 billion.

Among the key findings were:

  • Unauthorized alterations to payroll records.
  • Illegal salary payments.
  • Weak oversight of statutory payroll deductions.
  • Significant gaps in payroll management and control systems.

“Today, I officially handed over the payroll audit documents to the Director of DCI. This marks the commencement of criminal investigations into the issues identified in the audit report,” Ruku said after meeting Amin in Nairobi.

He stated that all allegations of fraud, abuse of office, and misappropriation of public funds would be investigated independently and professionally. He also urged officials in both the national and county governments to cooperate fully with investigators to establish the truth.

The investigations follow a directive issued last week by the Cabinet, chaired by President William Ruto, instructing the DCI to investigate the allegations and prosecute anyone found responsible.

The Cabinet further directed investigators to verify all payroll identification numbers, dismantle criminal networks manipulating the payroll system, recover lost public funds, and ensure those responsible are held accountable.

Earlier, Ruku had warned that some public servants had allegedly received unlawful promotions and salary increases to enable them to earn inflated salaries. He said hundreds of government officers are under investigation for suspected involvement in the alleged payroll fraud.

The audit began in December 2025 after the government established a multi-agency task force led by the National Intelligence Service (NIS) in response to concerns raised by Auditor-General Nancy Gathungu.

In her audit report for the financial year ending June 2025, Gathungu also found that some county governments had continued paying salaries and allowances to ineligible individuals, including retired employees and people receiving disability allowances without meeting the required eligibility criteria, raising fresh concerns over the management of public finances in Kenya.

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