Government Orders Salary Deductions for Civil Servants in Cases of Lost Public Funds
The government has issued a directive requiring civil servants working in public institutions where funds have been lost or remain unaccounted for to face salary deductions.
A letter from Chief of Staff and Head of Public Service, Felix Koskei, seen by newshub.co.ke, instructs that public officials responsible for financial losses in their respective institutions must be identified and surcharged. Koskei emphasized the need for government agencies to implement strict measures to recover any lost public funds.
“Develop a procedure to ensure regular surcharges to recover any loss of public resources henceforth,” Koskei directed.
A surcharge is a financial penalty imposed on public officers, including accountants, found responsible for mismanagement, misuse, or misappropriation of public funds. This action follows financial audits or investigations that reveal irregularities in financial records, fraud, or reckless expenditure. In addition to financial penalties, Koskei has directed all government agencies to take immediate action against civil servants implicated in internal and external audit reports for unethical conduct that has contributed to the loss of public resources.
To reinforce accountability, Koskei instructed all public institutions to refer any cases that require further scrutiny to the Ethics and Anti-Corruption Commission (EACC) for legal and disciplinary action.
“Initiate measures to sensitize and educate staff under your jurisdiction about the practices and procedures necessary to achieve sound fiscal discipline and integrity in the use of public resources,” Koskei ordered.
The letter was addressed to Principal Secretaries, Chief Executive Officers (CEOs) of independent constitutional commissions, chairpersons of state corporations, semi-autonomous government agencies (SAGAs), and leaders of unincorporated state agencies.
This directive is based on Section 74 of the Public Finance Management Act, 2012, which mandates accounting officers to take disciplinary action against public servants engaged in financial misconduct. The government has made it clear that any public officer who neglects their accounting responsibilities, fails to comply with financial management regulations, or weakens financial oversight within their institution will face punitive action.
Koskei also warned that any official who authorizes or approves unauthorized or illegal expenditures, or who fails to clear pending and eligible payments despite the availability of funds, will be held accountable.
These new measures are part of the government’s broader strategy to promote fiscal responsibility, enhance transparency, and ensure the effective use of public funds across all government institutions.
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