The National Assembly’s Public Investments Committee on Social Services, Administration and Agriculture (PIC-SSAA) has put the National Youth Service (NYS) under scrutiny following audit queries highlighting financial instability, staffing shortages and disputed land worth billions of shillings.
The committee, chaired by Navakholo MP Emmanuel Wangwe, questioned NYS Director General James Kipsiele Tembur when he appeared before the panel at Bunge Tower on Thursday, February 19, 2026. He was responding to concerns raised by the Office of the Auditor-General regarding the 2023/2024 financial year.
At the centre of the session was an unexplained variance in trade and other payables. NYS financial statements showed a balance of Sh2.59 billion, while the audit ledger indicated Sh2.72 billion, leaving an unreconciled difference of Sh130.8 million. Committee members noted that the discrepancy had not been reconciled as required under public finance regulations.
“What caused the variance, and why has reconciliation not been done?” Wangwe asked. Although NYS stated that some balances were cleared at the start of the financial year, committee members maintained that the audit issues remain unresolved.
Lawmakers also highlighted a negative working capital of Sh1.3 billion and a widening deficit of Sh2.6 billion, a sharp decline 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?” asked committee member Martin Owino.
Tembur attributed the financial strain to budget cuts and delayed government funding, noting the Service experienced a revenue shortfall of Sh1.77 billion, about 13 percent of its approved budget. Recurrent expenditure also fell below projections, with under-expenditure of Sh2.03 billion.
The audit also flagged encroachment on approximately 8,456 acres at the Hindi Field Unit and questioned ownership documentation for land valued at about Sh20 billion. Wangwe questioned why the agency was utilising only a small portion of its land, warning that idle property encourages encroachment.
In response, Tembur said the Service has developed eight business plans aimed at commercialising its land through large-scale farming and ranching to help bridge funding gaps.
The committee 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. Mandera Woman Representative Ummulkheir Kassim urged the Service to reform and adopt innovative measures to restore its stability.
“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,” she said.
The committee also met with 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.
The committee said it will continue reviewing public institutions to ensure accountability and efficient use of public resources.
Email your news TIPS to Editor@Kahawatungu.com — this is our only official communication channel
