County Workers Face Billions in Unpaid Salaries Amid New Deduction System

Under the new salary deduction system, pension contributions and statutory deductions will be remitted automatically to prevent diversion and protect county workers’ money.

Governors are under pressure to clear billions of shillings in unpaid workers' salaries and statutory deductions after counties reported Ksh100.24 billion in arrears.

Controller of Budget Margaret Nyakang’o told the Senate's Labour Committee that arrears had accumulated by June 30, 2026, amid concerns over delayed payments and the diversion of salary deductions.

Speaking on Friday, October 9, Nyakang’o noted that despite a new system introduced on July 1, 2026, to ensure pension contributions and other deductions are remitted automatically, counties still face billions in historical arrears.

The new system integrates the Integrated Financial Management Information System (IFMIS) with the Central Bank of Kenya’s system to facilitate direct remittances during payroll processing.

Source: Kenyans.co.ke