Auditor-General Edward Ouko has exposed a scheme in which State agency workers have not settled their salary advances and loans, which could inflate to Ksh1 billion if the time factor is considered.
The report by Ouko shows that Organisations are not keen at recovering the loans after offering them to their staff.
The scandal could make Kenyans lose more money even as the institutions try to recover the Ksh300 million that has already been lost.
An example of such a company is Nzoia Sugar company in Bungoma County, which is in the brink of collapse.
Reports by Daily Nation indicate that such scandals led to the downfall of 36 State companies that are barely surviving and could need Ksh 120 billion to be revived.
The Kenya Agricultural and Research Organisation has topped the list when as it has lost Ksh42 million to staff advances and loans.
The Kenya Wildlife Service (KWS) also gave Ksh28 million to workers who have since died, hence making the chances of recovering the monies slim.
The Auditor-General's office also realised errors showing some of the people who resigned and retirement still get huge salaries and allowances.
A report by the Auditor-General in 2016/2017 report showed that a former Chief Executive Officer took a salary advance of Ksh7.7 million, which was never paid.
