NAIROBI, Kenya Feb 23 – The National Youth Service (NYS) has come under intense scrutiny from the National Assembly of Kenya’s Public Investments Committee on Social Services, Administration and Agriculture (PIC-SSAA) over audit queries pointing to financial instability, staffing shortages and contested land worth billions of shillings.
The Committee, chaired by Navakholo MP Emmanuel Wangwe, grilled NYS Director General James Kipsiele Tembur when he appeared before the committee to respond to concerns raised by the Auditor-General for the 2023/2024 financial year.
Among the main issues was an unexplained variance in trade and other payables. While the financial statements reflected a balance of Sh2.59 billion, the ledger submitted for audit showed Sh2.72 billion leaving an unreconciled difference of Sh130.8 million.
The Committee noted that the reconciliation had not been addressed as required under Regulation 23(1) of the Public Finance Management (National Government) Regulations, 2015.
“What was the cause of the variance, and why has reconciliation not been done?” Wangwe posed.
Although NYS maintained that some balances had been cleared as first charges at the start of the financial year, Committee members insisted that the audit concerns remained unresolved.
Lawmakers further highlighted a negative working capital of Sh1.3 billion and a widening deficit of Sh 2.6 billion a sharp deterioration from the previous year. The Service is also burdened by Sh15.8 billion in historical pending bills.
“With this trajectory, can the NYS sustain itself as a going concern in the next five years?” Ndhiwa MP Martin Owino asked.
NYS Director General attributed the financial strain to budget cuts and delayed exchequer releases, noting that the Service experienced a revenue shortfall of Sh1.77 billion, representing 13 per cent of its approved budget.
Recurrent expenditure also fell below projections, with an under-expenditure of Sh2.03 billion.
The audit also flagged encroachment of approximately 8,456 acres at the Hindi Field Unit and questioned ownership documentation for land valued at about Sh20 billion.
“Why are you utilising only three per cent of your land when idle property invites encroachment?” the Committee Chairperson asked.
In response, NYS Director General Tembur said the Service had developed eight business plans aimed at commercialising its land through large-scale farming and ranching to bridge funding gaps.
Chairperson Wangwe directed NYS to submit its 2019 approved staff establishment, provide title documents for its Mombasa units, furnish a detailed report on questioned subcontractor payments, and fast-track action on asbestos removal.
“You are a big institution and a force in this country. Go back to the drawing board and find innovative ways to revive this Service,” Mandera County MP Ummulkheir Kassim urged.
Additionally, the Committee also met with the Kenya Medical Training College CEO, Kelly Oluoch, to address similar audit concerns and the low student turnout in marginalised areas such as Lodwar and Lamu.
