by Nikkie Aisha
Thursday September 3, 2026
Treasury CS John Mbadi meets with World Bank Divisional Director for Kenya, Rwanda and Somalia Qimiao Fan in Nairobi, September 2, 2026. National Treasury
The World Bank has outlined reforms for the National Treasury to implement aimed at tightening controls on public payrolls and curbing irregular government spending.
During a meeting with World Bank Regional Practice Director Hassan Zaman and Divisional Director for Kenya, Rwanda and Somalia Qimiao Fan on Wednesday, September 2, Treasury Cabinet Secretary John Mbadi discussed measures to improve the accuracy and consistency of human resource and payroll records across national and county governments and other public institutions.
“Harmonising HR and payroll data across national and county governments and other public institutions. Improving payroll integrity through unified payroll numbers and cleaning of county payrolls based on Office of the Auditor-General findings,” Treasury listed in a statement after the meeting.
As Treasury eyes Ksh94 billion in funding, the payroll measures form part of the Eighth Development Policy Operation (DPO 8), the final phase of a World Bank-backed programme supporting public sector reforms and stronger management of government finances.
The talks come amid government efforts to eliminate irregular entries and improve the management of public funds.
A forensic audit previously identified suspected payroll fraud valued at Ksh6.2 billion across national and county governments.
Investigators also found cases involving ghost employees, forged records, multiple salary payments and questionable banking details.
Government figures have indicated that more than 17,000 suspected ghost workers were identified across different public institutions.
To address this, the Public Service Commission (PSC) warned human resource officers against approving irregular payments, and ordered government agencies to process salaries exclusively through the official payroll system.
During the meeting, officials also reviewed measures to strengthen fiscal discipline and consolidation, as well as to ensure additional allocations to county governments are approved and disbursed on time.
Mbadi said Treasury would work with the World Bank and relevant agencies to address delays and complete the remaining reforms within the DPO 8 timeframe.
