Auditor General Flags Questionable Hiring Practices at Central Bank of Kenya

21, Oct 2025 / 2 min read/ By Livenow Africa

Kenya’s top financial regulator, the Central Bank of Kenya (CBK), has come under scrutiny after the Auditor General raised concerns over its recruitment and staff management practices.

In a recent report, Auditor General Nancy Gathungu criticised the bank’s human resources department for allegedly breaching several hiring and promotion procedures, suggesting that some employees were appointed to key positions without meeting mandatory qualifications.

“There were instances during the recruitment process where shortlisted or successful candidates did not fully meet the mandatory experience or service period requirements,” Gathungu noted. “Some were appointed despite having only acted in the positions previously.”

The Auditor General’s report also alleged that CBK’s management failed to consult the Salaries and Remuneration Commission (SRC) when determining staff pay and benefits — a move that contravenes public service regulations.

“Non-adherence to internal human resources policies was noted in staff promotions, particularly concerning placement on salary scales and promotions to non-succeeding grades,” she added.

Gathungu further flagged poor handling of staff secondments to other government agencies and delays in cost reimbursements, exposing the institution to potential financial and legal risks. The CBK, she observed, also operated for a year without a full board of directors — a gap that reportedly disrupted key committee functions, including those overseeing recruitment.

Broader Concerns Over Hiring Integrity

The Auditor General’s findings come amid a wider public debate over hiring ethics in Kenya’s state institutions. Last month, the Agriculture and Food Authority (AFA) was accused before Parliament of favouring specific ethnic groups in its recruitment process.

When grilled by the National Assembly Committee on Cohesion and Equal Opportunities, AFA Director General Bruno Linyiri struggled to explain the imbalance. He attributed the issue to the absence of a human resources manual since the authority’s formation.

“The Authority has never had a human resource manual since its inception,” Linyiri admitted. “Our staff were only deployed. However, we now have a framework and plan to recruit while addressing the irregularities flagged by the Auditor General.”

Lawmakers also raised concerns about AFA’s alleged marginalisation of persons living with disabilities, questioning whether inclusivity and equal opportunity policies were being observed.

Public Accountability Under Scrutiny

The revelations from both CBK and AFA underscore persistent challenges in Kenya’s public service — where transparency and fairness in recruitment remain recurring issues. While CBK has not issued a formal response to the Auditor General’s report, observers say the findings could prompt renewed calls for stricter oversight across all state institutions.

For many Kenyans, the question remains: how far up the chain of command do these lapses go — and will anyone be held accountable?

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