Court Halts Sh6.1 Billion NYS Payment Over Fraud Allegations

NAIROBI — The Anti-Corruption Court has issued orders blocking the disbursement of over Sh6.1 billion to multiple companies following allegations they submitted fraudulent procurement claims to the National Youth Service.

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The Ethics and Anti-Corruption Commission secured the injunction after investigations revealed that payment demands totaling Sh6,167,797,655 were based on fabricated contracts and non-existent supplies. The claims were submitted by firms associated with three individuals whose companies allegedly participated in the scheme.

Investigation Reveals Forged Documents

The anti-graft agency initiated its inquiry following a request from Public Service Cabinet Secretary Geoffrey Ruku, who raised concerns about numerous payment claims presented to NYS by purported suppliers. The ministry sought verification of the legitimacy of these demands.

Commission investigators uncovered 277 Local Purchase Orders, delivery notes, and invoices purportedly related to procurement activities during the 2013/14 through 2015/16 financial years. However, forensic examination determined that these documents were counterfeit and did not originate from NYS or authorized government channels.

Technical analysis revealed critical discrepancies in the documentation. Most of the LPOs lacked the standard flexographic printing used by the Government Printer, instead displaying computer-generated text that indicated fabrication. Additionally, investigators found that 29 authentic LPOs included in the claims had been issued to different government entities rather than NYS.

No Evidence of Actual Deliveries

The commission’s findings highlighted a complete absence of supporting evidence for the claimed transactions. Investigators found no inspection records, stock entry documentation, or evidence of goods movement to NYS facilities.

Storage records appeared to have been altered to create the appearance of completed deliveries. Officials reportedly signed off on these documents despite knowing no actual supplies had reached NYS central units, no inspection procedures had been conducted, and no goods had been distributed to NYS locations.

The investigation identified a former NYS Director of Finance as having authorized 245 of the 277 questionable LPOs. According to the commission, this individual was aware the supplies were fictitious, and his approval played a crucial role in advancing the fraudulent claims.

Court Grants Protection Orders

In a Notice of Motion filed on December 5, 2025, EACC requested urgent judicial intervention to prevent NYS from releasing the funds. Lady Justice Lucy Njuguna of the Anti-Corruption Court granted temporary injunctions on the matter.

The court orders prohibit the accused companies from pursuing the Sh6.1 billion payment and prevent NYS from processing or releasing any amounts connected to the disputed payment vouchers. These restrictions remain in effect pending full determination of the case.

Latest in Series of NYS Controversies

This case represents another chapter in ongoing allegations of corruption at NYS, an organization that has faced previous investigations into multi-billion shilling procurement fraud schemes. The agency has been the subject of multiple probes examining questionable financial transactions and procurement irregularities in recent years.

The matter remains before the court as EACC continues its investigation into the alleged fraud scheme.

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