Treasury Cabinet Secretary John Mbadi has given county governments 30 days to integrate their payrolls into the Integrated Payroll and Personnel Database (IPPD), warning that compliance is mandatory.
Speaking on Monday during the launch of the 2026/27 financial year and Medium-Term Budget framework at KICC, Mbadi said the move is aimed at eliminating ghost workers and taming ballooning wage bills in the counties.
“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, stressing that delays will not be entertained.
He revealed that counties spend an average of 55 percent of their revenues on salaries, a trend he described as illegal and unsustainable since it leaves little room for development projects and essential services.
The CS said the use of multiple payroll systems, including manual, casual, and parallel online structures — has worsened the situation, creating loopholes that allow ghost workers, inflated salary bills, and a bloated workforce. Some devolved units, he noted, commit more than half of their annual budgets to salaries.
“This is an instruction, and therefore, county executives must be onboarded soonest,” Mbadi said, making it clear that the directive is not a recommendation.
To enforce the order, Mbadi directed Treasury Principal Secretary Chris Kiptoo to supervise the integration process across all 47 counties. He said the reforms will help plug wastage, close budget deficits, and strengthen accountability in devolved units.
The CS also turned his attention to procurement, instructing all ministries, departments, and state agencies to fully adopt the eProcurement system. He warned that attempts to revert to paper-based procurement, which is vulnerable to manipulation, would attract strict sanctions.
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