Three senior officials at the National Youth Service (NYS) have been suspended as investigations intensify into a suspected Ksh2 billion financial scandal. Public Service Cabinet Secretary Geoffrey Ruku confirmed the action, saying it followed an alert from the Ethics and Anti-Corruption Commission (EACC) indicating possible criminal involvement by the officers.
Appearing before senators, Ruku said he acted immediately after receiving preliminary information from EACC. He emphasized that the exact amount allegedly lost is still under verification.
“I have not said the government has lost Sh2 billion, but EACC estimates there is a possibility that amount may have been lost,” he said, adding that a formal report by the commission will determine the actual figure and the officials’ role.
The suspensions come as the Auditor General’s report for the 2023/2024 financial year exposes far-reaching governance failures within NYS, including undocumented assets, stalled projects and weak financial controls.
According to the report, assets worth Sh29.5 billion are not properly documented, and the service lacks a complete asset register to track acquisitions or locations. Out of 58 land parcels owned by NYS, 42 including prime parcels in Mombasa and Yatta have no ownership records, raising concerns of potential encroachment.
Refundable deposits amounting to Ksh315 million under the 2014/15 youth empowerment program also remain unaccounted for, with no proof of disbursement. The Auditor General further noted NYS is facing a severe cash crunch, reporting a deficit of Ksh211 million and negative working capital of Sh550.2 million.
“In the circumstances, the service’s sustainability and ability to meet short-term obligations are doubtful,” the report states.
Senators pressed the CS for answers on long-term solutions to persistent corruption at NYS. Nandi Senator Samson Cherargei questioned what measures the ministry is implementing to prevent repeated financial scandals.
Laikipia Senator John Kinyua criticized the government’s plan to commercialize NYS, arguing that maintaining near-total ownership may not resolve corruption challenges, especially since the agency will still operate its own bank accounts.
Migori Senator Eddy Oketch also questioned why the government would conduct business with itself, while Nominated Senator Karen Nyamu sought clarity on how the commercialization program will support youth employment and skill-building.
Ruku explained that the National Youth Service Enterprise and Services Company is being established as NYS’s commercial arm, with registration and regulatory frameworks underway. He said the company will operate in sectors such as engineering, construction, agriculture, apparel manufacturing, security, hospitality and development services.
He added that the commercialization model will prioritize partnerships with both private and public entities to support market access, technology transfer and innovation. A performance matrix will also be used to track investments and outcomes across NYS ventures.
 have been suspended as investigations intensify into a suspected Ksh2 billion financial scandal. Public Service Cabinet Secretary Geoffrey Ruku confirmed the action, saying it followed an alert from the Ethics and Anti-Corruption Commission (EACC) indicating possible criminal involvement by the officers.){kind=link}