Kenya Ports Authority (KPA) is in the spotlight once more, for paying excess salaries in KShs. 312 million, for hours not worked.

A report by The Auditor General Nancy Gathungu for the financial year ending June 30, 2020, states that KPA’s comprehensive income had expenses of KShs. 19.5 billion. The report reflected that this was unsatisfactory because it constituted basic salaries of KShs. 7.5 Billion as hours clocked, during the working period.

“Basic salary was paid based on the hours worked as clocked in the time management system. However, the management approved payment for hours not worked when staff came to work late and when the staff left work before time in calculating basic pay for staff. This resulted in payment of salaries amounting to KShs. 312 million for hours not worked,” The AG report stated in part.

The AG’s report states that KPA records show absence of 239 employees for over 10 days leading to 78, 456 lost man hours. Despite the lost hours, employees were paid full salaries and allowances worth KShs. 36.8 million, against the Human Resource policy which dictates salary payments based on actual working hours.

Further, KPA paid overtime allowances without adherence to the Human Resource Policy, in excess of the 30 and 20 per cent for operations and administrative employees respectively. The allowances were paid in batches of KShs. 2.4 billion and KShs. 79.8 million. Allowances that were against the administrative guidelines include the KShs. 384 Million relating to third shift allowances.

“Review of payroll records indicated that the third-shift allowances paid were calculated at a rate of 3 per cent of basic pay for every day worked resulting to a payment of Sh54 million. This is contrary to the collective bargaining agreement of 2018/2019,” the AG’s report states.

The Authority had also engaged five management employees on contracts that were not approved by the board. The employees were paid KShs. 2, 014, 362 above the amounts on the contract letters. The move defied the minimum entry points for various grades at the KPA.

Ms. Gathungu also found out that the KPA properties (29 parcels of land), were occupied by individuals and companies. “Out of the 29 properties, only nine properties valued at KShs. 755,100,000 were included in the Authority’s fixed assets register while 17 properties valued at KShs. 732.5 million and three properties of unknown value were not included,” said the report.

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