The Directorate of Criminal Investigations (DCI) has officially launched an investigation into suspected payroll fraud worth Sh6.2 billion after the Ministry of Public Service handed over a forensic audit report detailing widespread irregularities in government payroll systems.
On Wednesday, July 8, Public Service Cabinet Secretary Geoffrey Ruku formally presented the report to DCI Director Mohamed Amin, setting the stage for a criminal probe into what officials described as the systemic manipulation of payroll records across government institutions.
The investigation follows a Cabinet directive from President William Ruto, who ordered the DCI to investigate the suspected fraud after an audit found irregularities totaling Sh6.2 billion.
Officials said the findings arose from a sample audit covering 12 of the government’s 53 State departments. The review flagged unauthorized changes to payroll records and indications of suspected manipulation of the payroll system.
According to the government, the audit examined related audit and parliamentary reports and involved interviews with key agencies. It also revealed what it described as deep-rooted weaknesses in payroll management.
After receiving the report, Amin said the DCI will conduct a comprehensive investigation to determine the scale of the alleged fraud and identify those responsible.
He added that investigators will verify the personal numbers used in payroll processing and assess all unauthorized changes made to employee records.
“Our teams will verify the personal numbers used in the payroll processing. We shall further examine all unauthorized alterations to records, all irregular payments, and weak controls and dismantle the criminal network involved in the manipulation of our government’s payroll systems,” he said.
A Pledge to Recover Lost Funds
Amin said the DCI will complete its investigations as quickly as possible and pledged to recover all public funds allegedly lost through fraudulent payments.
“This investigation will be undertaken within the shortest time possible, and we are committed to recovering every public fund lost through these malpractices,” he said.
He added that the DCI will work closely with other government bodies, including the Kenya Revenue Authority (KRA), the Assets Recovery Agency (ARA), the Financial Reporting Centre (FRC), and other security agencies, to trace how the money moved and identify those who benefited.
“We will work collaboratively with other government partners to ensure all the stolen funds are returned to the government and that the investigations are conducted professionally,” Amin said.
Amin also warned that the investigation will not spare anyone found culpable.
“I wish to assure the people of Kenya that anybody found culpable, regardless of position or status, will be brought to book because this is a serious matter of national concern,” he said.
He noted that investigators had only just received the audit report and will first analyze the documents before pursuing bank records, payroll statements, and transaction trails to determine how the funds were disbursed.
“We are yet to interact with the documents. We shall go through them. This will require collaboration with other government ministries, obtaining information from banks and payroll statements, and determining the accounts through which the money was transmitted,” he said.
The DCI said it will issue periodic updates as the investigations continue.
