The Cabinet has approved payroll reforms expected to address long-standing integrity issues within the government’s payroll system and ensure that statutory deductions are applied uniformly across all public entities.

In a Cabinet meeting held at State House, Nairobi, on Tuesday, February 10, 2026, the Cabinet announced that the decision follows a special audit of the 2024/2025 financial year.

In a communique shared by State House Spokesperson Hussein Mohamed, the Cabinet noted that the special audit uncovered serious governance and operational failures within the Government Human Resource Information System-Kenya (HRIS-K).

“The Cabinet has approved far-reaching payroll reforms to address long-standing payroll integrity issues left unresolved by successive administrations and to ensure statutory deductions are uniformly applied at source,” the despatch read in part.

The audit has uncovered widespread payroll anomalies relating to identity records, tax compliance, and bank accounts, compounded by poor system integration and the failure of about 300 state corporations to migrate to HRIS-K.

According to the Cabinet, one particular concern was the finding that 720 system editors altered more than 4.7 million payroll records without audit trails, including instances where staff edited their own records, alongside the absence of basic cybersecurity safeguards.

Payroll stabilisation measures

Likewise, financial irregularities linked to unauthorised payments and excessive salary arrears were identified, while weak disaster-recovery arrangements and expired ICT licences were flagged as major risks to public funds.

In addition, the Cabinet was briefed on immediate stabilisation measures already undertaken and sanctioned a firm reform roadmap.

The measures include mandatory security certification by March 11, 2026, deployment of forensic analytics to guide disciplinary and legal action, a governance reset of HRIS-K, and full integration of a statutory deductions platform.

It was further directed that statutory deductions be effected strictly at source across all public entities. A meeting of principal secretaries, accounting officers, and heads of parastatals will be convened to oversee the implementation.

In response, the government will now establish a Payroll Audit Unit (PAU) and urgent ICT upgrades to strengthen controls, safeguard public resources, and ensure transparency in payroll management.

“Accounting officers were directed to submit verified payroll data, fully cooperate with audits, and take personal responsibility for any irregularities. The reforms also provide for the establishment of Payroll Audit Units and urgent ICT upgrades to strengthen controls and safeguard public resources,” read the circular in part.