CS Mbadi orders counties to integrate payrolls into IPPD to curb ghost workers
Mbadi said the government would no longer tolerate resistance from counties on the matter.
Treasury Cabinet Secretary John Mbadi has directed all county governments to integrate their payrolls into the Integrated Payroll and Personnel Database (IPPD) within one month, warning that the move is essential to eliminating ghost workers and ensuring accountability.
Speaking on Monday at the Kenyatta International Convention Centre (KICC) during the launch of the FY 2026/27 and Medium-Term Budget Preparation Process, Mbadi said the government would no longer tolerate resistance from counties on the matter.
“On integrating the payroll system, we have noted that counties are still resisting. The notion that we should wait for MDAs, county assemblies, or county executives is incorrect. When will they be ready?” Mbadi posed.
He revealed that counties spend an average of 55 per cent of their total revenue on salaries, drawn from both their own sources and allocations from the national government a practice he described as unlawful and unsustainable.
Mbadi highlighted the rampant existence of ghost workers, noting that many counties still run parallel manual, casual, and online payrolls. This loophole, he said, has inflated wage bills, with some counties spending more than half of their annual revenues on salaries.
“Counties have also hired people who should not be on the payroll, creating a bloated workforce that drains public resources through waste and duplication of roles,” he said.
The CS stressed that the directive to integrate payrolls into the IPPD is mandatory, giving county executives one month to comply. “This is an instruction, and therefore, county executives must be onboarded as soon as possible,” he added.
Mbadi also directed Treasury Principal Secretary Chris Kiptoo to oversee the implementation of the payroll integration, emphasizing that the measure is key to curbing ghost workers, reducing wastage, and addressing budget deficits.
In addition, the CS touched on the eProcurement system, instructing all ministries, departments, and state agencies (MDAs) to fully implement it in their procurement processes. He warned that the Treasury would not relent on this initiative.
Mbadi noted that some government employees had attempted to stifle the use of the eProcurement system in an effort to return to paper-based procurement, which he said was prone to manipulation and corruption.
By enforcing these reforms, the Treasury aims to strengthen accountability, streamline government spending, and ensure that public resources are used effectively for service delivery, while addressing long-standing inefficiencies in salary payments and procurement processes across counties.
