Siaya Public Service Board CEO Wilfred Nyagudi And Board On The Spot Over Health Workers Recruitment Scam Marred By Massive Bribery

Over 380 dismissed health workers demand justice as investigations reveal sophisticated criminal syndicate exploiting desperate job seekers

The Siaya County Public Service Board and its Chief Executive Officer Wilfred Ouma Nyagudi are facing intense scrutiny following revelations of a massive recruitment scam that defrauded hundreds of health workers of millions of shillings in bribes while leaving critical health facilities understaffed.

The scandal, which has rocked Governor James Orengo’s administration, involves over 380 health workers who were dismissed on September 11, 2025, after working for up to eight months without pay, only to discover their appointment letters were allegedly forged.

The Anatomy of Deception

The elaborate scheme appears to have exploited the aftermath of a legitimate December 2022 recruitment drive that attracted 21,772 applicants for just 380 advertised positions.

While the County Public Service Board (CPSB) claims to have hired only 120 legitimate workers, over 500 individuals reported for duty across various health facilities in the county.

Mary, a Community Health Assistant III whose identity we’ve protected, typifies the victims’ ordeal.

She received what appeared to be an official appointment letter on August 25, 2025, promising a basic salary of Sh26,900 with allowances totaling over Sh70,000 monthly – more than double what genuine recruits earn.

“The letter had all the official logos, reference numbers, and signatures. I borrowed money for work clothes and reported to my assigned facility where I was welcomed,” Mary recounted. “For nearly a month, I worked daily without pay, confident my arrears would come through.”

The Criminal Network

Investigations reveal a well-coordinated criminal syndicate involving county insiders, M-Pesa agents, and individuals within security agencies who allegedly provided protection to the scam.

Victims reportedly paid between Sh250,000 and Sh500,000 for forged appointment letters and deployment postings.

One victim provided evidence of Sh350,000 in payments to Sharon Beatrice Wafula, made in three tranches over two days in August 2025.

The payments were strategically routed through M-Pesa agents to obscure the money trail.

The sophistication of the forgeries was remarkable. Documents included official-looking transfer letters that convinced colleagues of their legitimacy, and some victims even received formal acknowledgment letters from Health Administrative Officers, further legitimizing their presence in health facilities.

Systemic Failures Exposed

The scandal has exposed critical weaknesses in Siaya’s recruitment and payroll systems.

Despite a 2022 taskforce led by former Auditor General Edward Ouko recommending reforms including requiring all hiring to go through the CPSB and receive County Executive approval, the system remained vulnerable to exploitation.

CPSB CEO Nyagudi defended the board’s role, claiming it was the board itself that uncovered the scam.

“We flagged the fake appointment letters. We can’t fire people we never hired,” he stated, distancing the board from the syndicate.

However, questions remain about how over 380 individuals could work in county health facilities for months without proper verification.

Nyagudi acknowledged using parameters including sequence of reference numbers to determine document validity, but critics question why such basic verification wasn’t conducted earlier.

Impact on Healthcare Delivery

The mass dismissals have created a healthcare crisis in Siaya. Usenge Health Centre, recently upgraded due to apparent increased staffing, now faces potential downgrade to dispensary level.

A facility committee member warned, “We were upgraded to a health centre because of new staff. Now they’ve been sacked, and we risk going back to dispensary level.”

Health centers across sub-counties report longer queues, reduced services, and a looming crisis as facilities face sudden understaffing.

The irony is particularly stark as legitimately recruited candidates with genuine CPSB appointment letters remain undeployed more than a year later.

“We passed interviews and received signed appointment letters. But for over a year, we’ve been at home, while people with fake papers took our places,” lamented one frustrated genuine recruit.

Ramifications

The Community Initiative Action Group Kenya (CIAG-K) has accused county officials of running a “systematic exploitation scheme” targeting jobless youth.

Director Chris Owala demanded Governor Orengo disband the CPSB, compensate victims, and prosecute those responsible.

“We are exposing a scam that victimized over 382 health workers, including nurses and clinical officers, who were fraudulently recruited after paying bribes of up to Sh500,000,” Owala declared.

The Siaya County Assembly has launched investigations, with Speaker George Okode committing the matter to the committee on General oversight.

The committee has been directed to investigate circumstances surrounding recruitment, deployment, verification, and eventual dismissal of the workers within 30 days.

Governor Orengo, responding to mounting pressure, has urged the assembly to fast-track its investigation, calling for completion within two weeks rather than a month.

“The executive will not take any action until the assembly completes its proceedings,” he stated.

Victims’ Testimony

The human cost of the scam is devastating. Clinical officers Emily Nabwala Anyango and Felix Omondi, serving as spokespersons for the victims, described months of unpaid service while accumulating debts.

“We had been surviving on loans from individuals with the hope that once paid by the county government, we would settle the debts,” Omondi explained.

“How are we going to explain to our families or those that lent us money that has been keeping us going?”

The announcement of dismissals at the county headquarters was particularly traumatic.

Witnesses described scenes of victims fainting and collapsing as reality dawned. Some burst into tears, mourning how they would recover money allegedly paid for employment.

Social media posts, including one by Odhiambo Levin Opiyo, have provided additional insight into the scandal’s scope.

The post details allegations that county officials, including the chief health officer, county secretary, county nurse, and public service board chairman, sent “footsoldiers” to conduct recruitment for amounts as low as Sh300,000.

The post also reveals ongoing extortion, with claims that CPSB Chairman Nyakudi is demanding Sh200,000 from health workers to be added to approved lists, suggesting the corrupt network remains active.

The Way Forward

County Secretary Joseph Ogutu has maintained that the county government bears no responsibility for those not on the official list, telling victims to “take up the matter with those they gave the bribes to, or with the relevant government authority.”

However, the scale and sophistication of the scam raise questions about institutional oversight and accountability.

The fact that fraudulent workers were seamlessly integrated into health facilities, participated in departmental activities, and even received transfers suggests systemic failures beyond individual criminal activity.

As investigations continue, the Siaya health workers recruitment scam serves as a stark reminder of the vulnerability of desperate job seekers to sophisticated criminal enterprises and the urgent need for robust verification systems in public service recruitment.

The outcome of ongoing investigations by the county assembly, the Directorate of Criminal Investigations, and other agencies will determine whether justice is served and whether meaningful reforms prevent future exploitation of Kenya’s unemployed youth.

This story continues to develop as investigations proceed. Kenya Insights will provide updates as more information becomes available.