Auditor General faults Central Bank of Kenya over hiring irregularities and unapproved salary practices by HR managers

The Office of the Auditor General has exposed alleged human resource malpractices at the Central Bank of Kenya (CBK), accusing the regulator’s hiring managers of flouting recruitment and salary-setting procedures.

In her latest audit report, Auditor General Nancy Gathungu noted that some candidates were appointed to key positions despite lacking the mandatory experience or service period required by CBK’s own recruitment policies.

“There were instances during the recruitment processes where shortlisted or successful candidates did not fully meet the mandatory experience or service period requirements, even though they were previously acting in the positions they were subsequently appointed to,” Gathungu stated.

The Auditor General also faulted CBK’s HR department for failing to consult the Salaries and Remuneration Commission (SRC) before setting staff salaries and benefits, a move she said contravenes public service laws.

“Non-adherence to internal human resource policies was noted in staff promotions, specifically concerning placement on salary scales and promotions to non-succeeding grades,” the report added.

Gathungu further accused the bank of mishandling secondments to other state agencies and failing to reimburse associated costs, exposing the financial regulator to potential legal and fiscal risks.

The audit also revealed that the CBK operated for a full year without a complete Board of Directors, a governance lapse that disrupted the staffing of key committees and decision-making processes.

The findings come amid wider national concerns over questionable hiring practices across public institutions.

Just last month, the Agriculture and Food Authority (AFA) came under scrutiny from Parliament for alleged ethnic bias in its recruitment. Appearing before the National Assembly Committee on Cohesion and Equal Opportunities, AFA Director General Bruno Linyiri admitted the agency had operated without a human resource manual since its inception, leading to deployment-based staffing rather than competitive hiring.

Nyeri Town MP Duncan Mathenge challenged the authority to explain why two ethnic groups dominated its workforce and why people living with disabilities (PLWDs) were underrepresented.

Linyiri assured lawmakers that the authority had received an HR framework this year and would address the irregularities flagged by the Auditor General.

The CBK audit adds to growing pressure on state agencies to strengthen transparency and accountability in human resource management, amid rising concerns about nepotism, non-compliance, and weak oversight in public recruitment.