In 2025, some Kenyan counties paid millions to ghost workers and retirees—52 staff even shared one bank account. It’s like Netflix password sharing... but payroll fraud.
While Kenyans are tightening belts over the rising cost of living, some counties are leaking millions through outdated payroll systems. The 2025 Auditor General’s Report exposed just how deep the problem runs—and trust me, the tea is scalding.
The County Payroll Drama You Didn't See Coming
Let’s start with Homa Bay County, where 52 employees were found sharing the same bank account for their salaries. If that wasn’t wild enough, Bomet County paid KES 8.6 million to 12 employees—also tied to a single account.
Then there’s Nakuru County, which paid KES 36.16 million to 77 retirees, long after they had left public service. Meanwhile, Mombasa County kept paying staff who had either retired or died, with zero updates to their payroll system.
It sounds like a Hollywood scam—but it’s real, and it’s public money.
Why This Keeps Happening
The culprit? Outdated, disjointed, and easily manipulated payroll systems.
Most counties still use legacy platforms, spreadsheets, or manual processes. There’s no real-time verification. Exit data isn’t updated promptly. Some systems don’t even flag duplicate bank accounts—or whether a staff member is still alive.
And worst of all? There's no audit trail. So when fraud happens, there's no way to trace who approved what, when, or why.
Payroll Fraud Is Costing Kenya Millions
Let’s be real: ghost workers aren’t ghosts. They’re a result of poor payroll governance, slow data updates, and systems that can't talk to each other. And the cost? Beyond the wasted millions, it erodes public trust, delays real salaries, and undermines service delivery.
There’s a Smarter Way to Run Payroll
While some counties are stuck in the past, forward-thinking organizations are modernizing.
At FaidiHR, we’ve developed a cloud-based HR and payroll solution built for Kenya’s landscape—public and private.
Our system features:
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Real-time audit trails
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Bank account and identity verification
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Automated exits and retirement handling
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Seamless KRA, SHA/SHI, NSSF, and pension integration
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Employee self-service portals
No more ghost workers. No more shared salary accounts. No more surprises during audits.
“With our system, one account can’t be linked to 52 salaries. Ghosts don’t haunt digital payrolls.”
For Counties, the Message Is Simple: Upgrade or Keep Bleeding Money
This isn’t just about poor data—it’s about governance. It’s about integrity. It’s about the Kenyan taxpayer.
If you're an HR manager, payroll officer, or IT director working in a county or large organization, let’s talk. We’ll help you transition from confusion to clarity—with a system that works, protects, and delivers.
Contact FaidiHR
Email: sales@faidihr.com
Phone: 0702 339 699
“The true cost of outdated payroll systems isn’t just in shillings—it’s in public confidence. Let’s fix that.”