Three senior NYS officials suspended in Sh2 billion scandal probe
The Auditor General’s report for the year ending June 30, 2024, details systemic weaknesses at NYS, including poor governance, stalled projects, and financial mismanagement.
Three top officials at the National Youth Service (NYS) have been suspended as allegations of a Sh2 billion financial scandal emerge, according to Public Service Cabinet Secretary Geoffrey Ruku.
The move comes amid ongoing investigations by the Ethics and Anti-Corruption Commission into suspected irregularities within the agency.
More To Read
- Government unveils plan to commercialise NYS for youth jobs and skills
- NPSC announces dates for recruitment of 10,000 police constables
- Jubilee Party to back opposition candidate in Mbeere North mini-poll
- Senators demand answers over stalled Sh7 billion compensation to NYS families
- Govt plans to scrap repeated fingerprint requirement for clearance certificates
- Auditor General Nancy Gathungu lays bare financial, governance crisis at NYS
Ruku told senators that the suspensions were immediate after EACC alerted his office about possible criminal activity involving the three staff members.
“A few weeks after taking office, reports from the EACC indicated that investigations were underway at NYS. The commission informed my office that three employees might be involved in criminal activities. I took immediate action to suspend them until their names are cleared,” he said.
While the CS confirmed that investigations are still underway, he stressed that the exact figure involved is yet to be verified.
“I have not said the government has lost Sh2 billion at NYS, but EACC estimates there’s a possibility that amount may have been lost,” Ruku said.
He added that a formal report from EACC will clarify the total financial impact and the role of the suspended officials.
During questioning, Nandi Senator Samson Cherargei pressed the CS on strategies to curb corruption in NYS, long known for mismanagement.
“I have heard the Cabinet Secretary tell us that individuals are being investigated over the likely loss of Sh2 billion at NYS,” Cherargei said. “He should tell us how he plans to end corruption there and whether the government must trade with itself.”
The Auditor General’s report for the year ending June 30, 2024, details systemic weaknesses at NYS, including poor governance, stalled projects, and financial mismanagement.
Assets and properties worth Sh29.5 billion lack proper documentation, and the service has no complete asset register to track acquisitions, location, or depreciation.
42 of 58 NYS land parcels, including prime plots in Yatta and Mombasa, do not have ownership records, leaving them exposed to potential encroachment.
Refundable deposits of Sh315 million meant for youth groups under the 2014-15 empowerment programme remain unaccounted for, with NYS still tracing beneficiaries.
The Auditor General noted there was no proof of payments, suggesting the funds may have been diverted. NYS also faces a cash crunch, reporting a deficit of Sh211 million and negative working capital of Sh550.2 million during the review period.
“In the circumstances, the service’s sustainability and ability to meet short-term obligations are doubtful,” the report states.
Senators also questioned the government’s plan to commercialise NYS. Laikipia Senator John Kinyua said it may not address corruption since the agency will still retain almost all ownership, with only one per cent held by the National Treasury.
“The CS says NYS will continue operating its own bank accounts after commercialisation as a safeguard against corruption, yet many other state corporations with their own accounts still face graft,” Kinyua said.
Migori Senator Eddy Oketch questioned why the government would want to conduct business with itself and asked what products the company would handle.
Nominated Senator Karen Nyamu sought clarification on how the commercialisation strategy will support youth employment and skill development, especially in underserved regions.
Ruku explained that the National Youth Service Enterprise and Services Company is being set up as the commercial arm of NYS, with registration and regulations in progress.
He said it will operate in engineering, construction, agriculture, apparel manufacturing, security, development, and hospitality services.
“The programme will emphasise partnerships with public and private stakeholders to ensure access to markets, technology transfer and innovation,” Ruku said.
He added that a commercialisation matrix will be established to track performance, investments, and results across all NYS ventures.
Top Stories Today
