More than Sh6.1 billion in disputed National Youth Service (NYS) payment claims will remain locked after the High Court ruled that the money should not be released until a case filed by the Ethics and Anti-Corruption Commission (EACC) is heard and determined.
The decision hands the anti-graft agency a major boost in its effort to recover public funds it says were claimed through a fraudulent procurement scheme.
In a ruling delivered on July 31, Justice Rose Ougo rejected applications by businessman Benson Gethi and companies linked to him that sought to overturn earlier orders suspending payment of the pending bills. The judge instead upheld EACC's application, allowing the disputed funds to remain preserved as the case proceeds.
The orders stop the suppliers from taking any steps to recover the money and also bar NYS from processing or releasing the payments until the court reaches a final decision on the matter.
EACC moved to court in December 2025, suing 15 defendants, including suppliers together with serving and former NYS officials. The commission alleges that they lodged false claims amounting to Sh6.17 billion for goods said to have been supplied to the NYS headquarters and its Mechanical and Transport Branch during the 2013/14, 2014/15 and 2015/16 financial years.
According to the commission, investigations established that procurement and financial records were manipulated through the involvement of suppliers and NYS officials, allowing claims to be presented for contracts it believes were not genuine. EACC argued that preserving the money was necessary to shield public funds while the dispute is before the court.
The suppliers opposed the application, saying the Office of the Director of Public Prosecutions (ODPP) had twice reviewed EACC's investigation file and declined to approve criminal charges.
They also argued that a government multi-agency team had examined the pending bills, confirmed most of the claims and recommended that payment be made. They maintained that the funds had not been released and insisted that several of the claims were legitimate.
In response, EACC told the court that civil recovery proceedings stand on their own and are not tied to criminal cases. The commission said its forensic review went beyond the verification exercise and focused on determining whether the procurement documents were authentic.
EACC said the investigations uncovered missing requisition documents, local purchase orders that lacked proper approval and procurement records that it described as counterfeit.
In her decision, Justice Ougo agreed that EACC had placed enough material before the court to justify preserving the disputed funds until the case is concluded.
The judge also held that the decision by the ODPP not to prosecute did not prevent EACC from pursuing recovery of the money through a civil suit. She found that there was a real possibility that the funds could be released before the court settles the dispute and ruled that maintaining the preservation orders was the best way to protect public money.