Kenya Unveils Reforms After $48M Payroll Fraud Uncovered: Cabinet

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Kenya Unveils Reforms After $48M Payroll Fraud Uncovered: Cabinet - Sputnik Africa, 1920, 30.06.2026
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Kenya Unveils Reforms After $48M Payroll Fraud Uncovered: Cabinet

A sample audit of 12 state departments revealed decades-long irregularities, including unauthorized alterations, irregular payments, and major oversight gaps, according to the Cabinet's statement.

Key measures taken by the Cabinet:

🟠Orders to investigate payroll fraud, verify payroll data, dismantle criminal networks, recover lost funds, and prosecute those found culpable;

🟠Freeze on leasing additional office space pending an audit of all state departments and public institutions;

🟠Enhanced cybersecurity, payroll data cleansing, disaster recovery site, and establishment of a Standing Cabinet Committee on AI.

Other Cabinet decisions detailed in the statement:

🟠Infrastructure & water: $127 million approved to complete the Mwache Dam; financing cleared for key road sections under the Isiolo-Mandera corridor.

🟠Energy cooperation: Petroleum agreements with Rwanda and South Sudan endorsed to boost fuel transit.

🟠Healthcare: $35 million Mother-and-Child Lifeline Initiative approved for 10 hospitals; framework to combat HIV, malaria, TB and emerging infectious diseases endorsed.

🟠Industrialization: $44 million Leather Value Chain project approved to create 120,000 jobs; national cotton, textile and apparels policy adopted.

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