CS Mbadi Orders Counties to Integrate Payrolls into National System

Treasury Cabinet Secretary John Mbadi has issued a firm directive requiring all county governments to connect their payrolls to the Integrated Payroll and Personnel Database (IPPD) within one month.

He emphasized that this step is crucial in eliminating ghost workers and ensuring accountability in the management of public funds.

Mbadi made the announcement on Monday at the Kenyatta International Convention Centre (KICC) during the official launch of the 2026/27 Financial Year and the Medium-Term Budget Preparation Process.

He made it clear that the government would no longer tolerate counties that are reluctant to comply with the directive.

“On the matter of payroll integration, it is unfortunate that counties are still showing resistance. The argument that we must wait for ministries, departments, agencies (MDAs), county assemblies, or executives is not valid.

The question is, when will they ever be ready?” he asked, highlighting the urgency of the situation.

The CS pointed out that counties continue to spend, on average, about 55 per cent of their total revenue on salaries.

This money comes from both their own collected revenues and allocations from the national government. Mbadi stressed that this level of expenditure on wages is not only unlawful but also unsustainable in the long run.

He further noted that many counties are still operating parallel payroll systems, including manual lists, casual worker registers, and online records. This loophole, he explained, has allowed ghost workers to thrive, leading to exaggerated wage bills.

In some counties, more than half of their annual revenue is consumed by salaries, leaving very little for development and service delivery.

Mbadi also criticized the hiring of individuals who should not be on the payroll, saying the practice has created a bloated workforce. According to him, this unnecessary duplication of roles is draining public resources and encouraging waste within the counties.

The Treasury boss insisted that the new directive is not negotiable. He stated that county executives must comply within the one-month deadline, stressing that this was an instruction rather than a request.

“This is a clear order. County executives have no choice but to be onboarded into the system as quickly as possible,” Mbadi said.

To ensure the directive is carried out, Mbadi tasked Treasury Principal Secretary Chris Kiptoo with overseeing its full implementation.

He explained that this move is key to addressing ghost workers, reducing wastage, and bridging the country’s budget deficits.

On procurement matters, the CS also ordered all ministries, departments, and state agencies (MDAs) to fully implement the eProcurement system in their transactions.

He warned that the Treasury will not back down on this issue, noting that attempts to frustrate the system are meant to open loopholes for corruption.

According to Mbadi, some officials have been deliberately resisting the eProcurement system in order to push for a return to paper-based procurement.

He argued that paper records are prone to manipulation, while the online system ensures transparency and efficiency in government spending.

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