Kisumu spent Sh3.3bn on salaries, says Auditor General

Auditor General says this exceeds the recommended maximum of 35 per cent

In Summary

• The amount constitutes 42 per cent of the total county revenue for financial year 2017-18.

• Ninety-seven per cent of the employees are from the dominant ethnic community of Kisumu contrary to the law.

Kisumu Governor Anyang' Nyong'o
ON THE SPOT: Kisumu Governor Anyang' Nyong'o

The Kisumu county government spent Sh3.3 billion on salaries, Auditor General Edward Ouko has said.

The expenditure is 42 per cent of the total county revenue for the financial year ending June 30, 2018.  The amount is more than the recommended maximum of 35 per cent, Ouko says in his report for financial year 2017-18.

“The wage bill goes contrary to Public Finance Management Regulations of 2015 that recommends a maximum of 35 per cent," Ouko said.

The report also shows an unexplained discrepancy of Sh156.8 million between the Integrated Payroll and Personnel Database system, manual payroll and the financial statement's amount.

"The payroll system and manual payrolls showed a balance of Sh3,133,266,670 as opposed to the financial statement figure of Sh3,290,083,000 thus an unexplained variance of Sh156,816,330 million,” the report reads in part.

There was no explanation for the variances in the county that got 167 new permanent employees in the year under review. 

A comparison of the current year's balance with the previous year's audited balance indicates a decrease in the basic salary of permanent employees by Sh705.6 million. There is an increase in basic wages of temporary employees by Sh456.3 million and an increase in personal allowances paid as part of salary by Sh845.3million.

In the report, payroll data further reveals that 97 per cent of the employees were from the dominant ethnic community of Kisumu.

This, according to the AG, violates the National Cohesion and Integration Commission Act that requires that all pubic public establishments represent the diversity of the people of Kenya in the employment of staff.

The Act states that no public entity will have more than one third of its staff from the same ethnic community.

Ouko said advertisements for the positions by the County Public Service Board, shortlisting and interview minutes for the recruitments were not provided for audit review.

He said support documents for the payment of Sh150.4 million, which is included compensation for employees, were also not provided for audit.

Consequently, the propriety and validity of the expenditure of Sh3,290,083,000 could not be confirmed.