A 2023/24 audit report has found that three coastal counties—Mombasa, Lamu and Kilifi—are keeping employees beyond the retirement age with Mombasa leading the pack at 96. The Auditor General’s report says some counties are not adhering to the Public Service Commission (PSC) human resource policy which states that public officers should retire at 60 years or 65 years for persons with disabilities.
Kenya’s overall unemployment rate stands at 12.7% but the youth (15-34 years) who make up 35% of the population have the highest unemployment rate at 67%. The continued employment of retirees has raised concerns about job opportunities for young workers.
The audit says while county management cited contract extensions and disability exemptions for some employees, they failed to provide the necessary documentation such as formal contract extension agreements and disability certificates to support these claims.
Kilifi County had 26 employees still on the payroll beyond retirement age. Lamu County had four employees past retirement age and paid them a total of KSh 3.6 million during the review period. The counties claimed these individuals had rare skills that were hard to replace but the audit found no supporting documentation.
Lamu County was also found to have irregularly hired interns without a competitive recruitment process. Nine interns received KSh 900,000 between July 2023 and March 2024. The Auditor General noted that essential hiring documents such as needs assessment reports, application records, interview results and approvals from the County Public Service Board were missing from the audit records.
Further, the audit found discrepancies in stipend payments to interns. The PSC circular states that interns with a Bachelor’s degree should receive a monthly stipend of KSh 25,000 and a daily subsistence allowance of KSh 4,000 when working outside their assigned duty stations. But human resource records showed some interns were paid less than the stipulated amount.
The Federation of Kenya Employers (FKE) estimates that over one million young people join the labor market every year, many without formal training or skills. Retaining retirees and irregular hiring practices further limits job opportunities for this growing workforce.
The Auditor General’s report recommends stricter adherence to employment policies to ensure fair opportunities for all job seekers while maintaining transparency in county hiring and retention processes.