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Nairobi County continues to rely on a manual payroll system that remains vulnerable to abuse and corruption, despite efforts to implement a fully automated system.

 A report by the Controller of Budget’s (COB) for the first quarter of the Financial Year 2024-2025, says covering the period from July to September 2024.

According to the report, while the majority of the payroll is processed through the Integrated Personnel and Payroll Database (IPPD) system, millions of public funds were still processed manually.

The manual system, noted for its susceptibility to manipulation, processed Sh159.41 million in salaries, amounting to 5.9 percent of the total personnel emolument cost.

The Controller of Budget, Margaret Nyakang’o, pointed out the issue in her report: “Further analysis indicates that personnel emolument costs amounting to Sh2.56 billion were processed through the Integrated Personnel and Payroll Database (IPPD) system, while Sh159.41 million was processed through manual payrolls.”

The report indicates that the Sh159.41 million paid via the manual system highlights a significant vulnerability within the county’s financial systems, which could be exploited for fraudulent activities.

In response, Governor Johnson Sakaja’s administration assured that it is working towards the full automation of the payroll system to prevent such issues in the future.

Despite the payroll challenges, the report also sheds light on finances. Of the Sh5.45 billion in revenue during the period, Sh2.72 billion, only 50 per cent, was allocated to employee compensation.

The healthcare sector, which accounted for Sh1.08 billion of the wage bill, remains the highest single consumer of the county’s budget.

“In the first quarter of FY 2024-25, expenditure on employee compensation was Sh2.72 billion, or 50 percent of the available revenue of Sh5.45 billion,” the report stated.