Former Cabinet Secretary for the National Treasury, Njuguna Ndung’u, has painted a damning picture of the financial irregularities plaguing the government of President William Ruto during a handover ceremony to his successor, John Mbadi.

In a stark assessment of the nation’s fiscal health, Ndung’u revealed a system rife with ghost workers, phantom pensioners, and a deeply flawed education funding model.

He characterized the latter as a “broken” system that has seen taxpayers’ money channelled to non-existent schools.

The outgoing CS issued a grave warning to his successor, highlighting the urgent need for a comprehensive audit of the education funding model.

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He emphasized the unsustainable nature of current expenditures, citing instances where funds were disbursed to institutions that do not exist.

“It is a fact that we cannot afford this capitation, it is too much,” Ndung’u asserted, underscoring the gravity of the situation.

He called for a radical overhaul of the education system, from primary schools to universities, to align it with economic realities.

The former CS also sounded the alarm on the issue of ghost workers and pensioners, a scourge that has drained the public purse for years.

He proposed linking the government payroll to the Integrated Financial Management Information System (IFMIS) and the Kenya Revenue Authority’s (KRA) Pay As You Earn (PAYE) platform as a decisive step towards eliminating this anomaly.

“To eliminate ghost workers/ pensioners, link up all those people who pay taxes so that they can be identified,” Ndung’u stated.

Currently, the government allocates a staggering 38 per cent of its annual budget to salaries, wages, and pensions.

Ndung’u argued that this expenditure is unsustainable and that drastic measures must be taken to curb it.

The education sector has not been spared the spotlight. Ndung’u pointed out that the government spends a colossal Sh656.6 billion annually on education, representing 28 per cent of the total budget.

This figure is earmarked for capitation, infrastructure, and staffing, particularly for Junior Secondary Schools.

Auditor General Nancy Gathungu’s recent report corroborates these concerns, raising questions about the accuracy of enrollment figures and the misappropriation of funds meant for free education.

The report highlighted discrepancies between actual student populations and NEMIS data, suggesting that millions of shillings may have been lost to corruption.

Incoming Cabinet Secretary John Mbadi has vowed to tackle these challenges head-on. He has pledged to reinstate certain provisions in the Finance Bill 2024 to stimulate the economy and warned those obstructing reforms to step aside.

“If there are people who have benefited from the chaotic system, you have benefited enough. Now allow Kenyans to get value for money,” Mbadi declared.

Mbadi also emphasized the importance of integrating the national payroll with IFMIS and KRA to streamline financial management and root out corruption. He has vowed to implement far-reaching reforms in procurement to ensure the efficient and transparent use of public funds.

The revelations made by Prof. Ndung’u underscore the immense challenges facing the Kenyan government.

The new administration will have its work cut out in addressing the deep-rooted issues of corruption, inefficiency, and mismanagement that have plagued the nation for years.