Ruto’s Cabinet orders DCI to probe Ksh6.2 billion payroll fraud
By Mabonga Makhanu, June 30, 2026President William Ruto’s Cabinet has directed the Directorate of Criminal Investigations (DCI) to investigate a suspected Ksh6.2 billion payroll fraud after a government audit uncovered widespread irregularities in the public payroll system.
The directive was issued during a Cabinet meeting chaired by the President at State House on Tuesday, June 30, 2026, in Nairobi, where the CSs approved sweeping reforms aimed at dismantling decades-old payroll fraud, restoring integrity to the public wage bill and protecting taxpayers’ money through a whole-of-government payroll clean-up.
“President William Ruto chaired a Cabinet meeting that approved sweeping reforms aimed at dismantling decades-old payroll fraud and safeguarding taxpayers’ money through a comprehensive government-wide payroll clean-up. The move follows the findings of a payroll audit that uncovered widespread governance failures across the public service,” a communique from the head of state read in part.
“According to the Cabinet, a sample audit conducted in 12 of the country’s 53 State Departments revealed suspected payroll fraud amounting to Ksh6.2 billion”
The audit
According to the Cabinet, a comprehensive audit of the government’s payroll system exposed major weaknesses in payroll governance. A sample audit conducted in 12 of the country’s 53 state departments revealed suspected payroll irregularities amounting to Ksh6.2 billion.
The audit uncovered unauthorised alterations to payroll records, irregular salary payments, weak controls over statutory deductions, fragmented payroll management and significant oversight gaps that have left the system vulnerable to abuse.
Following the findings, the Cabinet directed the DCI to investigate the fraud, verify personal numbers used in payroll processing, dismantle criminal networks manipulating government payroll systems, recover lost public funds and ensure the immediate arrest and prosecution of all individuals found culpable.
Cabinets resolve
To prevent future losses, the Cabinet also approved the immediate implementation of a comprehensive payroll reform programme. The measures include a government-wide audit of all remaining State Departments and public institutions, mandatory migration of all Ministries, Departments, Agencies and State Corporations to the revamped Integrated Human Resource and Payroll System (IHRPS), enhanced cybersecurity, payroll data cleansing and validation, establishment of a disaster recovery site and integration of payroll with other public financial management systems.
The government said the reforms are intended to eliminate payroll fraud, strengthen accountability in public service and ensure prudent management of public resources.