An Auditor-General report has revealed that serious payroll failures at Kenya Power (KPLC) pushed hundreds of their employees into financial distress, after weak controls allowed forged documents to pass undetected.
The audit for the 2024/25 financial year shows that 384 staff members used altered payslips and HR letters to access loans, exposing gaps in how employee records are checked and approved. Because the fraud went unnoticed, 361 employees ended up with illegal salary deductions.
Payslips reviewed during the investigation showed that more than two-thirds of monthly salaries were being deducted, breaking the law under Section 19 of the Employment Act, 2007. In many cases, staff were left struggling to meet basic needs.
The report says the problem became widespread, with 94 percent of the affected employees taking home less than one-third of their pay, raising questions about why the payroll system did not block or flag the deductions early. While the audit does not reveal the total value of the loans or identify the banks involved, it highlights a larger issue: Kenya Power lacks strong monitoring systems to catch payroll abuse before damage is done.
The forged payslip scheme was one of 33 fraud cases detected through internal checks and reports from staff and customers. It follows earlier failures, including fuel theft at off-grid stations, where over 1.16 million litres of fuel were lost using fake delivery records.
The Auditor-General warned that Kenya Power does not have a reliable way to track whether fraud investigations are acted upon, limiting accountability. The report also questions whether the board is fully involved in reviewing fraud reports, suggesting oversight gaps at senior levels.
The findings show that beyond individual misconduct, weak systems and delayed action are leaving both workers and the company exposed to repeated abuse.
