The Government of Kenya (GoK) is set to implement a unified Human Resource Information System (UHR) starting from July 1st 2024. GoK is taking this step to streamline its payroll system by eliminating multiple payroll systems and replacing them with a unified one. This new system will be linked to the Kenya Revenue Authority’s (KRA) iTax platform, making it easier to manage employee data and tax contributions.
An iTax linked unified Human Resource Information System is part of GOK’s commitment to the International Monetary Fund (IMF) under the staff-level agreement ongoing program. Adherence to this program enables the government to access loans from the IMF. The process also involves an ongoing government-wide initiative to assess and streamline staffing levels in all ministries, state departments, agencies, and county governments.
“We have rolled the Unified Human Resource (UHR) system-which will consolidate Human Resource and Payroll data in the Public Service for access through a single warehouse. Since July 2023, the UHR system is linked to Kenya Revenue Authority i-Tax to facilitate filing of PAYE tax element associated with individual employees and total monthly PAYE tax obligation from the State Departments,” said Prof Njuguna Ndung’u, Cabinet Secretary, National Treasury & Economic Planning.
Going forward, the government will onboard other statutory deductions. By July 2024, the new system will ensure distribution of employee contributions to pension funds and other relevant contributions schemes.
UHR Rollout
The UHR system roll out is being done in phases. Phase 1 was implemented last year in September. It covered Ministry Departments and Agencies (MDAs) and Counties. Phase 2 involved the roll out to all State Agencies that have adopted the Unified Payroll Numbering (UPN) System-including to Teachers Service Commission (TSC). To date, 349,000 teachers under TSC have been issued with UPN.
The next step (Phase 3) is to issue UPNs to all Commissions, Independent Offices, State Corporations, Public Universities, and Agencies. This will be completed by July 2024.
New End-To-End E-Procurement (E-GP) System
GoK is also spearheading the adoption of end-to-end e-procurement (e-GP) system within the public sector: This is another obligation mandated by IMF and is to be carried out in stages. According to Prof Ndung’u, the process is currently at the pilot stage which is set to continue until December 2024. He further stated that this phase of the adoption process has implemented a successful user acceptance testing (UAT) program across twelve MDAs and counties.
“We are working diligently to strengthen our public procurement system. We are in the process of acquiring an e-Government Procurement (e-GP) System that will be end-to-end where all public procurement and assets disposal transactions are undertaken online and are fully compliant with the Public Procurement and Asset Disposal Act (PPADA) of 2015 and its attendant Regulations 2020,” said the CS.
Full onboarding to the public sector e-procurement platform will take place in financial year 2024/25. MDAs and Executive Offices of counties will be the first to be onboarded (Phase I), while state agencies and corporations will be onboarded in Phase II. Roll-out of the entire system to all MDAs will be from July 2024.
The new e-GP system will connect with the existing Integrated Financial Management Information System (IFMIS) to allow for automated payment processing to contracted suppliers. This system will be implemented with support from the World Bank.
IFMIS has already been updated and procuring entities will continue using the IFMIS e-Procurement module until the new e-GP system is fully rolled out.
