The NYS scandal remains one of Kenya’s most shocking tales of theft, collusion, and abuse of public office. From mysterious additions of zeros inside IFMIS to fresh 2025 probes, the story keeps twisting. Nearly a decade later, the scandal still dominates conversations about corruption, accountability, and justice in Kenya.
What Sparked the NYS Scandal?
The National Youth Service (NYS) was created to empower young Kenyans with training, jobs, and skills. Instead, it became a playground for corruption.
In 2015, the first scandal broke when Sh791 million vanished. Investigators discovered that insiders manipulated the Integrated Financial Management Information System (IFMIS). With just a few added zeros, they inflated figures on 25 vouchers.
Businesswoman Josephine Kabura, through her multiple companies, received hundreds of millions. Family Bank’s KTDA branch later processed massive withdrawals, raising questions about the banking sector’s oversight.
Who Were the Key Players?
The NYS scandal roped in powerful figures:
- Anne Waiguru – Then Devolution CS, accused but later cleared.
- Josephine Kabura – Once a hairdresser, her firm received close to Sh1 billion.
- Adan Harakhe & Hassan Noor – Claimed their IFMIS credentials were stolen.
- Benson Gethi – Inflated fuel costs and laundered proceeds into property.
- Mutahi Ngunyi – Consultant flagged for overpayments on restructuring contracts.
- Kipchumba Murkomen’s Law Firm – Received suspicious payments flagged by PAC.
These names captured headlines, though the courts later gave mixed rulings.
Courtroom Battles: Wins and Losses
- October 2024 – Two NYS officers, Finance Director Samuel Wachenje and Supply Chain Officer Hendrick Nyongesa, were convicted of the Sh791m fraud.
- October 2023 – Several high-ranking suspects in “NYS Season 1” were acquitted, while five others were placed on defense.
- May 2025 – A case involving a former Principal Secretary and 21 others collapsed. The court ruled there was “no case to answer.”
- May 2025 – In another file, 10 suspects were re-arraigned, with the DPP introducing fresh charges.
Kenya’s public grew frustrated as some walked free while others faced long jail terms.
Banks in the Spotlight
Family Bank became the first Kenyan bank punished for its role in the NYS scandal. In 2018, it admitted failing to flag suspicious transactions. The bank paid a fine of Sh64.5 million under a plea agreement with the DPP.
This case prompted banks to tighten their anti-money laundering controls, demonstrating that financial institutions play a significant role in either enabling or preventing corruption.
Fresh Probes in 2025
The NYS scandal refuses to die.
In mid-2025, the EACC raided the homes of senior officials over a Sh2 billion NYS fraud. Investigators said family companies and proxies won fake tenders at NYS colleges. Some goods were overpriced, others never delivered.
Even after earlier convictions and acquittals, graft cartels continue mutating—proof that NYS remains vulnerable.
Why the NYS Scandal Matters
- Youth betrayed – Billions meant for training and jobs were lost.
- Trust broken – Procurement laws, financial rules, and oversight systems collapsed.
- Institutions exposed – Ministries, banks, and tender committees all failed.
- Justice doubted – Long trials, selective convictions, and frequent acquittals tested faith in the courts.
Lessons for Kenya
- Lock down IFMIS access – Every change must leave a verifiable audit trail.
- Transparent tenders – Make procurement open and publicly trackable.
- Stronger banking oversight – Enforce real-time suspicious transaction reporting.
- Faster justice – Cut down on endless adjournments that weaken cases.
- Asset recovery – Freeze properties and accounts early before suspects hide wealth.
The scandal shows that, without accountability, corruption only recycles itself.
Final Note
The NYS scandal is more than history—it’s a living reminder of what unchecked graft can do. Billions meant for Kenya’s youth became fuel for cartels. Convictions, acquittals, and fresh probes show the fight is still on.
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