Counties Embroiled in Retirement Age Scandal as Auditor-General Flags Inaccurate Recording of Employee Birthdates

Strategic Insights -

According to a special audit report by Auditor General Nancy Gathungu, nearly all of Kenya's 47 county governments have been found to retain or reappoint employees who have exceeded the mandatory retirement age of 60 years. The report highlights cases of inaccurate recording of employees' birth dates in payroll systems, leading to premature retirement or retention beyond the legal retirement age. This raises concerns about miscalculated retirement dates, pension dues, and other age-based entitlements. The report also flags the risk of inaccurate birthdate capturing, which may result in employees being forced to retire early or being retained beyond the legal retirement age.

Key Takeaways:

  • 46 out of 47 counties in Kenya have been found to retain or reappoint employees who have exceeded the mandatory retirement age of 60 years.
  • The Auditor General's report highlights cases of inaccurate recording of employees' birth dates in payroll systems, leading to premature retirement or retention beyond the legal retirement age.
  • In Embu county, the total amount paid for extra years of employment was Sh49.29 million, and in Baringo, Sh3.34 million was paid to three retired officers who were reinstated on the payroll.
  • In Nyamira, 12 employees who had attained the retirement age of 60 years were still active in service, and the total amount paid for extra years was Sh998,985.
  • In Uasin Gishu, two employees aged above 60 years were paid a salary of Sh4.4 million, while in Samburu county, 13 employees who had attained the retirement age of 60 years were paid Sh7.07 million.
  • The report shows that the Kericho county executive paid officers who had attained the retirement ages but were still in active service some Sh25.63 million.
  • The auditor suggested that inaccurate capturing of birthdates poses the risk of exceeding the legal retirement age or forcing an employee to retire early.
  • Similar discrepancies were reported in Kitui, Kisii, Bungoma, Nyeri, Kirinyaga, Murang'a, and Nakuru counties.

Statistics:

  • 46 county governments have been found to retain or reappoint employees who have exceeded the mandatory retirement age of 60 years.
  • In Embu county, the total amount paid for extra years of employment was Sh49.29 million.
  • In Nyamira, 12 employees who had attained the retirement age of 60 years were still active in service, and the total amount paid for extra years was Sh998,985.
  • In Uasin Gishu, two employees aged above 60 years were paid a salary of Sh4.4 million.
  • In Samburu county, 13 employees who had attained the retirement age of 60 years were paid Sh7.07 million.
  • The Kericho county executive paid officers who had attained the retirement ages but were still in active service some Sh25.63 million.
  • The auditor identified 146 employees in the IPPD System with inconsistent dates of birth in Nyandarua county.

Sources:

  • [Special Audit Report by Auditor General Nancy Gathungu]
  • [Section 80 of the County Governments Act, 2012]
  • [Public Service Commission Regulations]