A Senate watchdog committee has directed the Office of the
Auditor General to conduct an in-depth audit to establish the exact amounts
owed by all 47 county governments to their employees.
The Senate County Public Accounts Committee (CPAC) issued
the directive following revelations of systemic delays in salary payments,
unremitted statutory deductions, gratuity payments, pension contributions and
Sacco remittances.
The committee raised concerns over a recurring practice in
which county governments deduct money from employees’ salaries but fail to
remit the funds to the relevant agencies. This exposes workers to financial
hardship and the risk of losing benefits.
CPAC chairperson Moses Kajwang’ said the committee was
particularly alarmed by persistent delays in settling gratuity for contracted
staff after they leave service. The Homa Bay Senator noted that many former
county employees have been pushed into hardship as a result.
“It is now clear that counties are mistreating the people
who work for them,” Senator Kajwang’ said, while directing the Auditor General
to carry out the audit.
The directive was issued during a session in which the
committee questioned Bungoma Governor Kenneth Lusaka over issues raised by the
Auditor General in the county’s financial statements for the 2024-25 financial
year.
Although the audit will cover all 47 counties, the committee
instructed the auditor to begin with Bungoma county, which was the focus of the
session.
Bungoma has yet to pay gratuity to staff who served under
former governor Wycliffe Wangamati during the five-year period between 2017 and
2022. Governor Lusaka confirmed that gratuity for staff who served between 2013
and 2017 had been paid.
However, he faced sharp questions from Bungoma Senator David
Wakoli, who pointed out that tutors who served during Lusaka’s first term in
2014 were still unpaid.
By June 30, 2025, the end of the last financial year, Bungoma
county owed its employees Sh549 million in unremitted pension contributions.
The auditor general also reported that the county had
accumulated salary arrears of Sh1.7 billion by the same date, covering unpaid
salaries for May and June 2025.
Lusaka told the committee that the Sh1.7 billion in salary
arrears had since been cleared, leaving a balance of Sh549 million made up of
unremitted statutory deductions to pension firms and other agencies.
He blamed the problem on the previous administration’s
failure to remit deductions and supported calls for accountability.
“Those who failed to remit deducted salaries must be pursued
and prosecuted,” Lusaka said, in remarks that appeared to fault the Wangamati
administration.
He urged the Auditor General to conduct a detailed analysis
of the Sh549 million to establish whether the deductions relate to taxes,
pension contributions, Sacco remittances or other statutory obligations.
The committee directed the Auditor General to carry out an
ageing analysis, categorising outstanding obligations by how long they have
remained unpaid. Senators said this would help identify chronic delays, track
payment patterns and guide corrective action across counties.
The Auditor General was ordered to submit a consolidated
report on all 47 counties within seven days.
Lusaka was also questioned over the accumulation of pending
bills, the absence of an internal audit committee, delays in establishing the
County Public Service Board and what senators described as disregard for
procurement laws, leading to the termination of contracts without due process.
