Three National Youth Service officers suspended

Public Service Cabinet Secretary Geoffrey Ruku has suspended three officials of the National Youth Service over what he described as suspected financial irregularities currently under investigation.

Appearing before the Senate, Ruku said the action followed a briefing from the Ethics and Anti-Corruption Commission (EACC), which indicated that the agency was probing possible financial improprieties at the institution.

“A few weeks after taking office, reports from the EACC indicated that investigations were underway at NYS,” Ruku told senators.

“The commission informed my office that three employees might be under investigation. I took immediate action to suspend them until the process is concluded.”

The CS stressed that the investigations are ongoing, adding that no confirmed figure has been established regarding any possible loss.

“I have not said the government has lost Sh2 billion at NYS,” he said.

“EACC estimates that there is a possibility that amount may have been lost, but we are awaiting a formal report.”

Ruku said a detailed account from the anti-graft body would determine the exact figure, if any, and whether the suspended officers bear responsibility.

During the session, senators asked the CS to outline measures being taken to strengthen accountability at NYS, an institution that has faced governance challenges in the past.

Nandi Senator Samson Cherargei urged the ministry to set out clear steps for improving oversight.

“The Cabinet Secretary should address how corruption will be tackled at the agency,” he said.

After the Senate appearance, Ruku told the Star that the Auditor General had initially flagged concerns, which were later picked up by the EACC.

Details of the matter under investigation have not yet been fully disclosed.

However, the Auditor General’s report for the year ending June 30, 2024, pointed to financial management gaps at the agency, including unsupported asset valuations, stalled projects and procurement weaknesses.

According to the audit, various NYS properties and assets valued at Sh29.5 billion lacked adequate supporting documentation, and the agency did not maintain a complete asset register or tagging system.

The report also noted that 42 out of 58 parcels of land lacked ownership documents, exposing them to potential encroachment risks.

Additionally, refundable deposits amounting to Sh315 million from a past youth empowerment programme were listed as unaccounted for, with efforts reportedly underway to trace beneficiaries.

The audit indicated there was no conclusive evidence of disbursement.

The Auditor General further reported financial strain at the institution, citing a Sh211 million deficit and a negative working capital position of Sh550.2 million during the review period.

During the Senate session, lawmakers also questioned proposals to commercialise NYS, with some expressing doubts about its viability.

Laikipia Senator John Kinyua said the proposed ownership structure appeared similar to the existing model and sought clarity on how it would improve governance.

Migori Senator Eddy Oketch questioned the rationale behind a state agency doing business through a commercial arm, while Nominated Senator Karen Nyamu asked how the initiative would support employment and skills development for young people.

Ruku said the government is in the process of establishing the National Youth Service Enterprise and Services Company, the proposed commercial entity for NYS.

He said the company would operate in areas such as engineering, construction, agriculture, apparel manufacturing, security, development and hospitality.

“The programme will emphasise partnerships with public and private stakeholders to ensure access to markets, technology transfer and innovation,” he said, adding that a commercialisation matrix would be used to track performance and outcomes.