A fresh storm has rocked the National Youth Service (NYS) after investigators uncovered a well-coordinated scheme that siphoned Ksh2 billion of taxpayers' money. Several senior officials have been accused of masterminding the scandal, using their relatives and close associates as proxies to cover their tracks. The raid by the Ethics and Anti-Corruption Commission (EACC) on May 7 exposed a deep network of corruption that thrived under a veil of family connections, fake contracts, and fraudulent deals. EACC CEO Ahmed Mohamud revealed that one company, registered under the official's wife and brother-in-law, received over Ksh250 million in payments for food supplies that were never delivered to the NYS college. [Image: Screenshot] How family networks fueled the NYS scandal The NYS scandal, according to EACC, was not a simple case of a few rogue individuals. It was a sophisticated web spun by top NYS officials who exploited their positions to loot public funds.
Investigators revealed that the officials awarded multimillion-shilling contracts to companies secretly owned by their spouses, children, siblings, and close relatives. These companies received payments for services and goods that were never delivered.
The plot ran deep. The officials allegedly used family members as directors of these companies to avoid direct links to the fraud.
By hiding behind their relatives, they evaded early detection by internal auditors and oversight agencies. Documents seized during the EACC raid showed that the same companies repeatedly won lucrative tenders between the 2019/2020 and 2024/2025 financial years.
According to insiders, the contracts covered everything from supplying uniforms and food to constructing dormitories and roads. But many of these projects existed only on paper.
In reality, the money was paid out without any goods or services being delivered. The payments, investigators found, were wired to company accounts and quickly withdrawn or transferred to personal accounts of the relatives. EACC confirmed that court orders enabled them to access key documents, including bank statements, tender files, and company registrations linking the officials to the fraudulent firms.
"The suspects allegedly abused their positions of trust and authority to embezzle public funds through collusion, procurement fraud, and payment for fictitious contracts," EACC stated. Kenyans have expressed outrage over the latest revelations, questioning why loopholes continue to exist in NYS procurement systems. [Photo: Courtesy] The hidden faces behind the fraudulent companies At the center of the NYS scandal are shadowy companies controlled by the officials' family members. One such company, registered under the official's wife and brother-in-law, received over Ksh250 million in payments for food supplies that were never delivered to the NYS college.
Another company owned by a cousin reportedly pocketed Ksh180 million for construction projects that were never completed.
"These companies had no real offices or employees. They were created solely to win tenders and collect payments," a source close to the investigation disclosed. The companies used shared email addresses and phone numbers, raising red flags about their legitimacy.
In one striking case, an official's 22-year-old daughter was listed as the sole director of a company that secured Ksh90 million in tenders.
Investigators believe the young woman was unaware of the full extent of her role, having been convinced by her father to "help run a family business."
This family-centered fraud extended beyond immediate relatives. Investigators uncovered that friends and long-time family acquaintances were also listed as directors and shareholders. In return, these proxies received small cuts of the loot or gifts such as cars and cash. The ongoing probe and the road to prosecution Following the successful raid, the implicated officials were taken to EACC headquarters for intense questioning.
Investigators are now tracing the flow of the stolen money, with a focus on recovering assets purchased through the embezzled funds.
"We are following the money. The outcome of this inquiry will inform the appropriate action, including prosecution of any culpable persons and recovery of unexplained wealth," EACC emphasized.
Sources indicate that the probe has already identified multiple high-end properties, luxury cars, and undeclared offshore accounts linked to the suspects.
The anti-graft agency is working closely with the Financial Reporting Centre (FRC) to track suspicious transactions and freeze questionable accounts.
Legal experts warn that prosecution could be slow due to the complex nature of the scheme and the influence of some of the officials involved. However, pressure is mounting on the government to act swiftly and make an example of those found guilty.
Civil society groups have called for the resignation of implicated officials pending the conclusion of investigations. NYS scandal marks another chapter of public betrayal This Ksh2 billion NYS scandal adds to the growing list of corruption cases that have dogged the institution in recent years. Despite reforms promised after previous scandals, NYS remains a hotbed of graft and impunity.
Kenyans have expressed outrage over the latest revelations, questioning why loopholes continue to exist in procurement systems.
"We cannot continue losing billions while young people are denied opportunities," said a youth activist protesting outside NYS headquarters. "This is theft from the youth of this country."
As the investigation deepens, all eyes are on the EACC and the judiciary to deliver justice. For many Kenyans, the hope is that this time, the culprits will face real consequences and that systemic reforms will finally take root to stop the endless cycle of scandals at NYS.