Court stops Ksh6.1 billion NYS payout after EACC uncovers fictitious contracts
Court stops Ksh6.1 billion NYS payout after EACC uncovers fictitious contracts
The Ethics and Anti-Corruption Commission (EACC) has obtained court orders blocking a payment of more than Ksh6.1 billion to several companies accused of submitting fictitious procurement claims to the National Youth Service (NYS).
The disputed payment, amounting to Ksh6,167,797,655, was being claimed by companies linked to a businessman and other two firms owned by two individuals. EACC established in its investigations that the money that was being sought for contracts and supplies that never existed.
According to court documents, EACC launched the probe after a formal request from the Cabinet Secretary for Public Service Geoffrey Ruku.
The ministry flagged multiple payment claims submitted to NYS by alleged suppliers and requested verification of the legitimacy of the demands.
EACC investigations further revealed that the companies presented 277 Local Purchase Orders (LPOs), delivery notes and invoices for goods supposedly procured during the 2013/14 to 2015/16 financial years.
However, the commission alleges that these procurement documents were forged and did not originate from NYS or the Government Printer.
Further forensic analysis showed that most of the LPOs were not printed through the Government Printer’s flexographic process.
Instead, investigations found that they bore computer-generated characters, pointing to fabrication.
The commission also added that 29 genuine LPOs attached to the claims belonged to batches issued to other government entities, not NYS.
EACC alleges that there were no inspection records, no stock entries, and no movement of goods to NYS sub-units.
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Store documents, according to the commission, were manipulated to suggest deliveries had taken place when they had not.
”The officials fraudulently signed the documents despite knowing that no deliveries were made to the central or mother units at NYS, no inspection exercises were conducted, and no goods were distributed to NYS sub-units,” EACC confirmed.
Among some of the allegations is that a former NYS Director of Finance signed 245 out of the 277 disputed LPOs. EACC argued that he was fully aware the supplies were fictitious and that his approval was critical to pushing the claims through.
In a Notice of Motion dated December 5, 2025, the commission sought urgent orders to stop NYS from releasing the funds.
Lady Justice Lucy Njuguna of the Anti-Corruption court granted temporary injunctions restraining both the claimants and NYS from seeking or effecting payment based on the disputed vouchers, pending determination of the matter.
The court prohibited the defendants from demanding the Ksh6.1 billion and restrain NYS from processing or disbursing any amount tied to the serialised payment vouchers.
This latest case adds to a series of alleged corruption scandals involving NYS, an agency that has previously been at the centre of multi-billion-shilling procurement fraud investigations.
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