State to commercialise NYS in plan to ease budgetary pressure

The National Youth Service is set to embark on commercial activities once fresh cabinet reforms are completed, according to Cabinet Secretary for Public Service, Justin Muturi.

This is among measures the government is pursuing to ease budgetary pressure, alongside mergers and dissolution of state parastatals.

CS Muturi said the reforms are aimed at streamlining operations within the NYS, enabling it to engage in income-generating ventures. Proposed revenue-generating ventures include construction services, security provision and agribusiness.

“We have potential to do a lot of work, a lot of commercial activities, as we indicated in my presentation, commercialising service delivery and security services,” said Muturi.

The CS assured Parliament that once the commercialisation plan is fully approved, the institution would be in a position to reduce its reliance on the exchequer.In the commercialisation plan, the entity will make independent decision and is already in the procurement stage for some of its commercial enterprises.

“We were to get Sh500 million for the commercial activities, however, we got Sh250 million from exchequer and the 250 million, chair, we directed to some commercial activities, one, masonry plant and water-proofing plant, already we are doing the procurement process, and in the next few weeks we will get those plants. So we are fully utilised,” he said.

His submissions to the National Assembly Social Protection Committee indicated financial constraints pose a significant challenge to the realisation of these plans.

The Budget Policy Statement for the 2025-2026 financial year reveals a deficit of Sh15 billion, which is expected to impact the implementation of key policy programmes and projects. This shortfall he noted could hinder the service’s ability to achieve its performance targets, including recruitment and training of 30,000 new service members.