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EACC freezes Sh6.2billion NYS payout over fake contracts

The Ethics and Anti-Corruption Commission (EACC) has obtained court orders barring Sh6.2billion payout to several companies over alleged fraudulent contracts and goods not supplied to the perennially graft laden National Youth Service (NYS).

Lady Justice Lucy Njuguna of the Anti-Corruption and Economic Crimes Court in Nairobi issued the temporary orders, halting the payments pending the hearing and determination of the case.

The commission said it launched investigations after receiving a report from the Cabinet Secretary, Ministry of Public Affairs, Gender, Senior Citizens and Special Programs, seeking verification of payment claims amounting to about Sh6billion submitted to NYS by various suppliers.

On December 5, 2025, EACC instituted the suit seeking a permanent injunction to restrain the NYS from effecting the payment vouchers and proceeding with the payments of Sh6,167,797,655 to the companies.

The suppliers included Highview Trading, Horizon Limited, Link General, Real Tool Trading, Ratego Technologies, Comptool Trading, Jimchar Enterprises, Liz Link General Suppliers, Newtool Mart Trading and Tison Limited.

Investigations established that Schoolwork Enterprises, Newtool Mart Trading, Ratego Technologies, Realtool Trading, Comptool Trading and Horizon Limited, associated with Ben Gethi Wangui, Liz Link General Suppliers owned by Elizabeth Wangeci Ngugi, Link General and Jimchar Enterprises Limited owned by Susan Nyambura Mburu, and Tison Limited, named in the suit as the 1st to 6th defendants, submitted 277 Local Purchase Orders (LPOs), delivery notes and invoices to NYS.

“Through these documents, they demanded payment of Kes6,167,797,655 for the purported supply and delivery of various goods allegedly procured by NYS during the 2013/2014, 2014/2015 and 2015/2016 financial years,” EACC said on Thursday, December 18, 2025.

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The purported supplies were based on LPOs allegedly issued by NYS during the period.

However, investigators found that NYS officials colluded with the companies to falsify accountability documents, including LPOs, Goods Received Notes (Counter Receipt Voucher – S13), Stock Control Cards (S3), and inspection and acceptance forms.

The officials fraudulently signed the documents despite knowing that no deliveries had been made to the central or mother units at NYS, no inspections were conducted, and no goods were distributed to sub-units.

The officials who allegedly facilitated the fraud are named in the suit as the 7th to 15th defendants.

Upon probing the claims, EACC detectives established that no goods were delivered to NYS as purported.

The commission further established that NYS officials colluded with the said companies to falsify accountable documents, including LPOs, Goods Received Notes, Stock Control Cards, and inspection and acceptance forms.

The officials are Samwel Mudanyi Wachenje, Bernard Kipkoech Yatich, Bernard Nzioka Kioko, Julius Nyandimo Airo, John Ng’ang’a Gicharu, Titus Trouble Libondo, Isaac Wafula Kundu, Jane Wangechi Gichuki and Chemoss Karoria Ndiema.

According to the probe, the nine fraudulently signed the documents despite knowing that no deliveries were made, no inspection exercises were conducted, and no goods were distributed to NYS.

The suit papers add that upon presentation of the LPOs, delivery notes and invoices, payment vouchers were prepared for signature by various officers, including the Accounting Officer of NYS, to facilitate payment of the claims.

An analysis of the payment vouchers and their annexures forwarded by NYS to EACC, serialised as S/No. 000001–002901, further revealed numerous irregularities.

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Upon presentation of the LPOs, EACC said delivery notes, invoices and payment vouchers were prepared for signature by various officers including the accounting officer of NYS to facilitate settlement of the claims.

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