CS Muturi: NYS lacks funds to implement commercialisation directive
The commercialisation is set to be executed through NYS Commercial Enterprises, a Special Purpose Vehicle (SPV) aimed at ensuring financial sustainability.
The government's plan to commercialise the National Youth Service (NYS) faces financial hurdles, with the Public Service and Human Capital Development Ministry struggling to secure adequate funding.
Cabinet Secretary Justin Muturi on Wednesday told members of the National Assembly Departmental Committee on Social Protection that budget constraints have stalled the recruitment of 20,000 additional NYS recruits as directed by the president.
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Muturi, accompanied by NYS Commandant General James Tembur, revealed that the ministry has been allocated Sh11.18 billion in the next Budget Policy Statement (BPS), far below the Sh26.48 billion required to implement the projects under its docket.
He urged lawmakers to push for additional funding, arguing that commercialising NYS would increase revenue generation.
"This issue of presidential directive is a well-thought-out idea. I believe that by the time the president makes such a directive, a lot of thinking has gone into it," Muturi stated.
The commercialisation is set to be executed through NYS Commercial Enterprises, a Special Purpose Vehicle (SPV) aimed at ensuring financial sustainability.
The CS disclosed that the National Treasury had already approved the policy paper supporting the initiative. However, progress has stalled due to a disagreement with the Attorney General's office, which has proposed turning NYS into a parastatal instead.
"I am glad that I took a Cabinet memo, and it was approved. Even the Cabinet Secretary for National Treasury, John Mbadi, approved it. We are now waiting to resolve a small misunderstanding between us, the AG, and the National Treasury," Muturi said.
Tembur confirmed to MPs that the NYS lacks the funds to recruit the additional 20,000 youths as per the presidential directive.
"The FY 2025/26 Budget Estimate, as provided in the BPS, has a deficit of Sh15 billion. This will affect the implementation of policies, programmes, and projects, consequently impacting the service's ability to achieve its performance targets," he said.
The initial plan was to recruit 40,000 youths in two phases, but inadequate funding has rendered the approach unfeasible.
The NYS Commandant General warned that underfunding would also hinder infrastructure development, including barracks, classrooms, workshops, and sanitation facilities.
During an NYS passing-out parade on March 3, 2023, the president directed that the youth intake be increased from 10,000 to 100,000 annually and that the NYS become a self-sustaining government agency by the Financial Year 2027-2028.
However, the current budget can only support 10,000 recruits.
MPs expressed concerns over the lack of commitment from the Treasury, arguing that presidential directives should be taken seriously.
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Chairperson of the Departmental Committee on Social Protection Alice Ng'ang'a and her vice chair Kipkelion West MP Hilary Kosgei faulted the Treasury for failing to allocate sufficient funds.
"There is serious laxity from the Treasury because it seems they are not taking these directives seriously," Kosgei said.
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