Education Ministry Orders Staff Headcount as Government Probes Sh6.2bn Payroll Fraud

The Ministry of Education has ordered a fresh physical headcount of its employees as the government intensifies investigations into suspected Sh6.2 billion payroll fraud involving 84 human resource officials across three public institutions.

The verification exercise aims to establish the authenticity of government employment records and identify irregularities, including salaries paid to non-existent employees, workers sharing bank accounts and individuals receiving payments without valid bank details.

In a memo issued by Secretary of Administration James Kianda on behalf of the Principal Secretary, the State Department for Basic Education directed all employees to report to Jogoo House from Monday, October 19, to Wednesday, October 21, 2026, for the exercise.

Employees have been instructed to carry their original national identity cards, Kenya Revenue Authority PIN certificates, first appointment letters and current appointment letters.

“Following a recent payroll audit conducted in various State departments and counties by the State Department for Public Service and Human Capital, it has become necessary that a physical headcount of all employees on the payroll be conducted in all State departments,” the memo states.

The exercise will cover all employees, including those who are hospitalised or on annual, sick, maternity, paternity or other authorised leave.

Kianda warned that employees who fail to undergo the verification risk having their salaries suspended, describing the exercise as urgent and mandatory.

Staff who transferred from the Teachers Service Commission to the ministry have been instructed to use their ministry appointment letters as proof of their first appointment.

Newly appointed Quality Assurance and Standards Officers will use the same letter for both their first and current appointments.

84 HR Officials Implicated in Payroll Probe

The headcount comes as the government investigates suspected payroll fraud involving the Kenya Prisons Service, Kenya Police Service and Ministry of Health.

Public Service Cabinet Secretary Geoffrey Ruku said the ministry had received a report from the Directorate of Criminal Investigations implicating 84 human resource officials in the alleged scheme.

The officials with access to the payroll system have been directed to step aside for 30 working days as investigations continue.

The Ministry of Public Service has deployed replacement human resource officers to maintain operations during the period.

“We have credible evidence as far as Kenya Prisons, the Ministry of Health and the Kenya Police Service.

And therefore any human resource manager with the user right to get into the payroll system must step aside for a period of 30 working days,” Ruku said.

The Cabinet Secretary said arrests were expected before the suspension period ends, particularly within the Kenya Prisons Service.

“There will be arrests before the end of those working days, especially, and I want to say without fear of contradiction, from the Kenya Prisons Service. People will be arrested before those working days come to an end,” he added.

Auditors Uncover Suspicious Employment Records

Investigators have reportedly identified questionable employment records, including cases in which some civil servants were registered as having been recruited before they were born, while others were listed as joining the public service before attaining the age of 18.

Other suspected irregularities include multiple employees receiving salaries through a single bank account and payments being made to individuals without valid bank account details.

“There are those employees who are sharing bank accounts. They are employees with no bank account, but money has been paid,” Ruku said.

Preliminary findings suggest that some beneficiaries may have been recruited through colleagues, including human resource officers, to facilitate irregular payments.

Investigators are also examining whether funds were subsequently transferred to bank accounts allegedly controlled by officials who facilitated the transactions.

The allegations remain subject to investigations, with authorities seeking to establish the individuals responsible and recover any public funds lost through the suspected fraud.

Cabinet Orders Nationwide Payroll Audit

In June, the Cabinet directed the DCI to investigate payroll fraud, verify personal numbers used in salary processing, dismantle criminal networks suspected of manipulating government payroll systems and recover lost public funds.

The directive also called for the arrest and prosecution of individuals found culpable.

The Cabinet further approved a government-wide audit covering remaining State departments and public institutions, alongside the mandatory migration of ministries, departments, agencies and State corporations to the revamped Integrated Human Resource and Payroll System.

The measures are intended to strengthen payroll controls, improve accountability and prevent unauthorised payments from public funds.

The investigation comes as Kenya pursues additional external financing to support its budget.

Central Bank of Kenya Governor Kamau Thugge recently said the government was negotiating with multilateral lenders, including the World Bank and African Development Bank, for financing expected during the current financial year.

Speaking during the IMF and World Bank annual meetings in Bangkok, Thugge said the discussions included possible budget support and a World Bank Development Policy Operation.