July 5, 2024

Government to remove 20,000 ‘ghost’ workers from payroll

2 min read
Government to remove 20,000 ‘ghost’ workers from payrolls

The ghost workers are estimated to cost Kenyan taxpayers as much as 5.7 billion shillings as the government plans to clean payroll

The ghost workers are estimated to cost Kenyan taxpayers as much as 5.7 billion shillings as the government plans to clean payroll.

Kenya’s government has launched a unified human resource system in an effort to rid public service payrolls of more than 20,000 “ghost workers,” a newspaper reported. 

The system consolidates HR and payroll data and is linked to the Kenya Revenue Authority‘s iTax system as well as other deductions like pension funds and employee contribution schemes according to a Treasury document. 

The ghost workers are estimated to cost Kenyan taxpayers as much as 5.7 billion shillings ($36.4 million) a year, the newspaper said, citing a government report.

The system has been piloted in ministries, state departments, and counties, and will be rolled out for the entire public service by July. 

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The National Treasury brief obtained states that “the system will consolidate human resources and payroll data in the public service for access through a single warehouse.” Ministries, state agencies, and counties have tested the system. 

It is connected to the iTax system run by the Kenya Revenue Authority. 

According to the brief that the Cabinet authorized during its meeting on Wednesday, “this is to facilitate the filing of PAYE tax element associated with individual employees and total monthly PAYE tax obligation from the state departments.” 

All state entities, including commissions, independent offices, and state corporations, will be linked to the system by July, according to the government. 

By July 2024, the government plans to implement the UHR system across the board for the public sector. 

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