The Sh2 billion scandal in NYS commercialisation
National
By
Edwin Nyarangi
| Nov 13, 2025
The Ethics and Anti-Corruption Commission (EACC) is investigating a suspected Sh2 billion scandal at the National Youth Service (NYS).
The revelation come amid concerns over the government’s plan to commercialise NYS, with Senators wondering how viable the idea was.
“I would like to state that I have not said that the government has lost Sh2 billion at NYS. What we have is an active investigation by EACC, which is estimating a likelihood that Sh2 billion has been lost. We are waiting for the report which will avail to Kenyans,” Public Service, Human Capital Development and Special Programme Cabinet Secretary Geoffrey Ruku told the plenary.
Laikipia Senator John Kinyua questioned the CS’s explanation, saying he was not inspiring confidence on the planned commercialisation.
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“The Cabinet Secretary is telling us that NYS will continue having its own bank accounts after being commercialised as a safeguard against corruption yet many other state corporations have their own bank accounts but we have still seen corruption thriving,” he said.
Eddie Oketch of Migori wondered why the government would want to do business with itself since there was no framework for forming a company to run NYS.
Oketch said the biggest asset for NYS is manpower since they are going to train 100,000 youths with only 30 percent having a chance of being given jobs.
Ruku said the process of establishing the National Youth Service Enterprise and Services Company was ongoing. He said the firm would engage in engineering and construction services, agriculture and textile production, security and hospitality services, among others.
Nandi Senator Samson Cherargei sought to know the strategies that Ruku has put in action to avert graft activities since the NYS has been synonymous with corruption over the years and that it was important for him to confirm whether it was necessary to commercialize NYS.
“I have heard the Cabinet Secretary telling us that some individuals are being investigated over the likely lose of Sh2 Billion in NYS. He should tell us how he intends to end corruption in NYS and also whether it is necessary for the government to trade with itself,” said Cherargei.
“The programme will also emphasize partnerships with public and private stakeholders to ensure access to markets, technology transfer and innovation, a commercialization matrix will be developed to track performance, investments and outcomes across all NYS enterprises,” said Ruku.
He said the NYS Enterprise and Services company will also be oversighted by oversight bodies including: Office of the Auditor-General, Public Procurement Regulatory Authority, Ethics and Anti-Corruption Commission and the Directorate of Criminal Investigations.
The Cabinet Secretary told Senators that Parliamentary committees such as the Public Investments Committee, the Committee on Social Protection, and the Committee on Cohesion and National Integration will also provide parliamentary oversight to the entity.