The finance department of Homa Bay County is under heavy scrutiny after a detailed audit by the County Public Service Board exposed several serious issues pointing to poor management, corruption, and a complete breakdown in accountability.
The investigation, which covered the period from mid-2024 to mid-2025, revealed deep irregularities within the payroll and human resource systems. Key finance officers and administrators now face questions over mismanagement and possible abuse of office.
One of the major findings was the unexplained removal and return of 430 employees from the county payroll across several months. These entries were not supported by any official communication, making it impossible to verify if these individuals were genuine county employees.
This loophole could have opened the way for ghost workers and loss of public funds. Even after inquiries, the finance heads did not provide any clear answers, leaving suspicion that the system may have been manipulated for fraudulent gain.
The board recommended that personal files of all employees be properly updated, and payroll changes strictly accounted for.The report also noted that chief officers failed to take responsibility for their staff.
Payment schedules for salaries were not signed or verified by them, raising concerns about whether they knew how many staff were under their supervision. This creates a loophole for fictitious employees and leaves room for unchecked payroll inflation.
The finance team was advised to make sure that all payroll approvals go through proper verification.Another issue was the irregular promotion and movement of staff across job groups without following laid down procedures.
For example, one employee was promoted from a revenue clerk position to a personal assistant with a jump in salary grade, yet there was no formal justification or process followed. In total, 614 employees had changes in job groups without proper advertisement or promotion interviews.
Such actions raise concerns of favoritism, political interference, and financial misallocation.
The audit also uncovered double payments, with some staff receiving both basic and special salaries. In one case, 15 employees were paid over Kshs.3.1 million irregularly. Others received both rental and special house allowances amounting to more than Kshs.3 million.
On top of that, over 2 million shillings was paid in allowances such as extraneous duty and health risk to staff whose roles do not qualify for such benefits. This points to either deliberate overpayments or incompetence in payroll processing. The finance leadership was urged to strictly follow SRC guidelines and recover irregular payments where necessary.
An alarming revelation was that hundreds of workers were receiving less than a third of their basic pay because of excessive deductions, contrary to the law.
In October 2024 alone, 1,436 employees were affected. This highlights serious errors or manipulation in salary deductions and commitment management, which the finance office failed to address.
The report also flagged 9 employees who stayed in acting positions beyond the allowed six months and drew extra allowances totaling Kshs.836,978.
By law, acting allowances should not be extended indefinitely, and such violations reflect disregard for regulations and possible intent to misuse funds.
Ethnic imbalance in staffing was another serious issue. The county workforce stood at 7,202 by May 2025, but 76% of the employees came from a single ethnic community.
This is a clear violation of the National Cohesion and Integration Act, which requires diversity in public institutions. The County Public Service Board called on management to ensure fair representation and address discriminatory hiring practices.
Altogether, the report shows how the finance department, under the leadership of senior finance officers and departmental heads, failed in maintaining integrity, fairness, and proper financial discipline.
The board made several recommendations, including the need for proper documentation, fair hiring, strict control over promotions and payroll entries, and full compliance with national employment laws and salary guidelines.
Without immediate action, the financial stability and credibility of the Homa Bay County government could continue to suffer.
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