Another Reason Prof. Njuguna Ndungu Should Be Sacked

Another reason Prof. Njuguna Ndungu should be sacked:

Apart from failing to inspire confidence in the financial sector that the Central Bank can stabilize the Kenyan shilling there is another reason for Prof. Njuguna Ndungu to leave office as Governor of the Central Bank of Kenya.  He is clearly debarred from continuing in office under Chapter 6 of the Constitution having been found guilty of lying to the public and official institutions about the notorious sale of the Grand Regency Hotel.

The Cockar Report prepared after the hearings by the Commission of Inquiry into the sale of the Grand Regency Hotel makes damning findings regarding the conduct of high ranking public officers including the former Minister of Finance and the current Governor of the Central Bank of Kenya.  The Cockar Report “finds the entire transaction tainted with misrepresentation and deception to such an extent as to warrant specialised investigation by the Attorney General and other relevant institutions into the bona fides of the purchaser and other aspects of the transaction.”  3 years have now passed since President Kibaki received this report and no action has been taken against the public officers, not least against the Governor of the Central Bank of Kenya whose contract was extended in March 2011.   Kenyans are unaware of any attempt by Kenya’s investigative bodies taken any action to ascertain the bona fides of the purchaser as recommended by the Commission of Inquiry.

Kenya’s Ministry of Finance did not give evidence before the Cockar Commission despite its subject matter being intrinsically linked to the Goldenberg scandal which emanated from within Treasury during the early 1990s.  One of the persons named in Gazette Notice No.6217, former Minister for Finance, Hon. Amos Kimunya, chose at the last moment not to appear before the Commission to give evidence. When the Commission was informed on 20th September, 2008, that he would not be appearing, it opted to summon the Permanent Secretary to the Treasury to give evidence on the Treasury’s role in the sale of the Grand Regency. Unfortunately the Commission was informed that the Permanent Secretary, who was a member of Board of Directors of the Central Bank of Kenya, Mr. Joseph Kinyua was at that time out of the country and was not expected to return before the 17th October, 2008, or thereabouts. Treasury therefore did not appear before the Commission. 102 exhibits were considered in compiling the final report.  The proceedings run over 9,000 pages.

The Governor of the Central Bank was indicted in the final report of the Commission of Inquiry.  The Cockar report states that –

“Prof Njuguna Ndungu was not truthful to other public institutions, namely the Kenya Anti-Corruption Commission, the Commissioner for Lands, the Public Procurement Oversight Authority and the Prime Minister about the sale of the Hotel. Even the valuers who were instructed to value the hotel were not told the purpose for which the valuation was being undertaken. At CBK Prof Njuguna Ndungu and Mr. Abuga were solely responsible for the disposal of the Hotel. Prof Njuguna Ndungu’s conduct was contrary to S 18 of the Public Officer Ethics Act which provides “A public officer shall not knowingly give false or misleading information to members of the public or to any other pubic officer”. Prof Njuguna Ndungu, must take responsibility for the disposal of the Grand Regency hotel in a secretive and questionable manner.”

It goes further to report that Prof. Ndungu compelled a subordinate to also violate the law –

Mr. Kennedy Kaunda Abuga acted in concert with the Governor Prof.  Njuguna Ndungu to rush the sale of the Hotel while at the same time keeping it a close secret. Kennedy Abuga was only too willing to carry out all the wishes of the Governor Prof Njuguna Ndungu relating to the disposal of the Hotel without offering independent professional opinion. Kennedy Abuga’s conduct was also contrary to S 18 of the Public Officer Ethics Act.”

Why is Prof. Ndungu still in office?  What confidence can he really inspire?

You can download the Cockar Commission Report here

There is Need for a Headcount in the Kenya Public Service. This is Urgent As It is a High Risk Corruption Area in the National Budget


Government of Kenya has 484,830 staff according to the 2008-9 National Budget (Schedule IV – details of personal emoluments and other allowances).  This is about 1.2 % of the population and includes the all categories of public employees.  The Economic Survey says that employment in the public sector is 638,000 employees.

      • Police officers – 45.057
      • Prison officers 17,255
      • Probation officers – 465
      • Magistrates – 287
      • Judges – 58
      • Primary school teachers – 170,059 (1:45 pupil ratio)
      • Secondary school teachers – 43,016 (1:28 students ratio)
      • Registered medical personnel – 77,736 (1: 492) personnel to population ratio)
      • doctors

The GOK spends 40.93% of its recurrent expenditure in wages and personal allowances for staff.  Recurrent expenditure is Ksh 349 billion 231 million 540 thousand One hundred and Ninety Shillings (349,231,540,190 Ksh).  This amounts to Ksh138.67 billion per annum.  Made up as follows:


Kenya Shillings

%age of Recurrent Expenditure

Basic Salaries – Permanent Employees



Personal Allowance Paid as Part of Salary



Personal Allowances Paid as Reimbursements



Personal Allowances Provided in Kind






However most civil servants do not earn huge salaries as one might imagine from the high budgetary provision.  Out of the 484,830 staff of GOK most earn less than Ksh 15 thousand per month, including their allowances.  In this category would be the majority of:

    • Policemen and women
    • Nurses.
    • Prison warders
    • Administration police and provincial administration officers
    • Teachers

In the supplementary budget that was rejected by Parliament almost Ksh 8.6 billion of Teachers allowances were mysteriously unreported to Parliament.  This is worrying because every year over Ksh 29 billion is spent on Teachers Allowances.  Shockingly, recent press reports indicate differences in the payroll figures between the Teachers Service Commission, the Government Efficiency Monitoring Unity, and the Economic Survey itself.  These suggest that there could be a misapplication of teachers allowances hence the need for a headcount.  The same applies to other large payroll departments of the Government of Kenya.  A headcount in Uganda in 2006 found ghost workers and ghost schools complete with maintenance and other pupil-teacher costs



Comparison of figures for teachers

TSC – Press Statement– 05/06/09


ES 2009

Budget   in position for 2008-9

Budget   Provides for 2008-9








The executive arm of government handles the entire budget of the Government of Kenya, which for 2008-9 amounted to close to 10 billion US Dollars. Opportunities for grand and petty corruption are many within the executive, and should be controlled through systems and procedures that reduce discretion and introduce adequate checks and sanctions. Amongst such checks is certainty of payroll figures. More theft is possible through ghost worker payments than many would imagine.

Strong leadership from the Chief Executive – the President – is a core success factor. In Kenya this has never been fully demonstrated. Action on several allegations of grand corruption such as the Goldenberg scandal (1990s), Anglo Leasing scandal (1997 to date), and the recent Teachers Service Commission Supplementary Budget scandal (April-May 2009) have stopped largely at the conclusion of Commissions of Inquiry, or Parliamentary Reports. Minor administrative action has been taken in certain cases, but overall the key findings in commission reports have not been investigated further or acted upon significantly. In this regard the independent forensic audit into whom, how and what caused the Ksh 10. 7 billion “error” has yet to be empanelled three weeks after it was resolved by Parliament that the supplementary budget showed cause for an investigation into the National Budget over the past three years. At least Ksh 8.6 billion in this scandal was alleged to be personal allowances due to employees of the Teachers Service Commission.

Just last week, the Efficiency Monitoring Unit and the Teachers Service Commission have been engaged in a tit-for-tat exchange which makes it clear to Kenyans that no one really knows how many legitimate or ghost teachers there are on our public payroll. This is cause for concern because as the Teachers Service Commission likes to say, it is the largest single employer in Kenya (and often claims to be the largest in sub-Saharan Africa).


The Partnership for Change inists that a thorough payroll cleaning exercise be undertaken immediately, because things do not look so good, in view of the recent confusion surrounding what should be a fairly straightforward question: How many teachers are there in Kenya’s Secondary and Primary Schools on the public payroll? In Uganda a similar exercise once unearthed not only ghost teachers but also a number of ghost schools complete with infrastructure / maintenance, teacher and pupil costs. As the Finance Minister prepares to read his budget this Thursday, he may want to check whether or not his provisions for teachers’ allowances are being padded. In any case we will not waster our tax money paying ghosts as we have been doing for decades. Kenyans are still paying Anglo Leasing ghosts.

Teacher Service Personnel – 2008-2009 AS IN THE APPROVED ESTIMATES

Teachers Service Commission Personnel – 2008-9  
DATA FROM BUDGET ESTIMATES 2008-09 Approved Ceiling In Position Difference Salary (Ksh) House (Ksh) Medical (Ksh) total wages (Ksh)
Principal graduate teacher II – 8, 572 8572 910 7662 2,927,509,440.00 1,337,232,000.00 313,118,016.00 4,577,859,456.00
GAT I – 44,571 44571 44571 0 11,338,673,340.00 6,418,224,000.00 1,202,347,296.00 18,959,244,636.00
Senior Graduate Teacher – 26,821 26821 26821 0 8,368,152,000.00 3,862,224,000.00 733,822,560.00 12,964,198,560.00
GAT II – 12,058 12058 11800 258 2,758,629,240.00 868,176,000.00 274,488,312.00 3,901,293,552.00
Trained Technical Teachers – 728 728 728 0 170,483,040.00 52,416,000.00 16,572,192.00 239,471,232.00
UT Graduate Teacher – 700 700 700 0 146,454,000.00 37,800,000.00 13,708,800.00 197,962,800.00
S1/ Diploma Teacher – 2,151 2151 4886 -2735 450,032,220.00 116,154,000.00 42,125,184.00 608,311,404.00
Approved Teacher iv – 63,396 63396 58580 4816 9,486,577,440.00 1,597,579,200.00 903,012,624.00 11,987,169,264.00
UT Tech Teacher – 500 500 500 0 74,820,000.00 18,000,000.00 7,122,000.00 99,942,000.00
P1 Teacher – 72,636 72636 68975 3661 10,093,498,560.00 1,830,427,200.00 835,023,456.00 12,758,949,216.00
P2 Teacher – 8,488 8488 8488 0 1,110,739,680.00 203,712,000.00 78,123,552.00 1,392,575,232.00
Chief Principal – 84 84 84 0 38,636,640.00 22,176,000.00 4,447,296.00 65,259,936.00
Senior Principal – 125 125 125 0 53,070,000.00 33,000,000.00 5,871,000.00 91,941,000.00
Principal Teacher 1 – 433 433 433 0 167,493,060.00 114,312,000.00 17,941,788.00 299,746,848.00
  241,263.00 227,601.00 13,662.00 47,184,768,660.00 16,511,432,400.00 4,447,724,076.00 68,143,925,136.00


1. Conduct a national headcount of all public officers. If they do not exist they should not be paid.