Wamuzi News Ke
A scathing new audit report by Auditor General Nancy Gathungu has blown open a full-scale governance and financial catastrophe at the National Youth Service (NYS), exposing federal mismanagement, unverified assets, land encroachment and a liquidity crisis that jeopardizes the agency’s survival.
Breakdown: NYS at Breaking PointGathungu’s audit, covering the fiscal year ending June 30, 2024, reveals that NYS recorded total liabilities matching its assets at Sh3.3 billion, resulting in a negative working capital of Sh550.2 million, even before factoring in a staggering Sh16.4 billion in pending bills. Only Sh5 billion of those has been authenticated; the remaining Sh10.9 billion remains under criminal investigation.
The report warns that NYS is unable to meet its short-term obligations without continued government bailouts. The deficit for the year stood at Sh211.6 million, compared to just Sh29 million in the prior year—signalling dangerous financial degradation.
Asset Anarchy: Missing Titles, Encroached Lands.
Gathungu blasts NYS for missing ownership documentation on most of its assets. While the agency lists holdings totaling Sh29.5 billion, title deeds were produced for only 16 of the 58 land parcels. Forty-two properties remain undocumented, casting doubt on legitimate ownership.
Moreover, 2,247 hectares of NYS land—including parcels at Yatta, Athi River, Mavoloni, Mombasa Technical Institute and Mwatate—have reportedly been encroached upon. The agency’s demarcation process is incomplete, and plots remain unfenced.
Projects Frozen, Funds Drained.
The audit lays bare a pattern of fiscal waste: major infrastructure projects remain unfinished despite full payment. NYS reportedly paid Sh300 million in collaboration with contractors who vanished—some after receiving millions like Sh7 million or Sh23 million to build housing units.
A water tank contract worth Sh5.7 million also failed to deliver due to non-payment to the contract holder. A notable incomplete project—housing units in Industrial Area worth Sh49 million—remains derelict, a symbol of procurement failures.
Governance Breakdown and Institutional Collapse.
The audit flags a dysfunctional NYS council plagued by vacancies in key independent seats and weak oversight over procurement and execution. Many appointees lack the technical competence needed for governance.
At field units, NYS’s operational infrastructure is in disrepair, forcing reliance on firewood for cooking and basic facilities failing to meet standards—further evidence of institutional neglect. Public Service CS Ruku Now on the SpotPublic Service Cabinet Secretary Geoffrey Ruku inherits a ticking financial time bomb.
He has already directed the Public Procurement Regulatory Authority (PPRA) to audit all NYS tenders since 2019 and launched a review of the agency’s procurement manual.
A commercialisation strategy is underway, aiming to increase NYS intake to 40,000 recruits by January 2026—a transition critical for survival. Crisis Summoned:
What Lies Ahead?
This audit reveals that NYS is not just mismanaged—it is in an existential crisis. The agency’s collapse could halt youth training programs, derail civic engagements and expose public assets to abuse.
Unless swift and decisive action is taken—recovering lost funds, reclaiming land, completing infrastructure and overhauling governance—NYS risks sliding into irreversible failure.
