COTU secretary general Francis Atwoli has demanded the disbandment of Uwezo and Youth Enterprise Funds terming them 'corridors of corruption'.
He said that the two kitties have failed in their mandate of addressing youth unemployment and assisting women and people with disability.
Atwoli, in a statement on Sunday, claimed that the bodies have become conduits through which money from the National Treasury is siphoned.
"Reports that the Uwezo fund was on the verge of death is disturbing. This is a clear indication that the two funds were simply meant to present a suitable platform through which public funds would be looted," he said.
Atwoli said Kenyan youths require skills to build their careers through working and developing themselves.
"The youth are not meant to be exposed to huge funds from the government to do business at such early ages which only helps in the promotion of corruption," he said.
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The worker's union boss said the hunt for funds from the two agencies has forced many youth to move from one office to the next bribing officers to be awarded tenders.
"If indeed the government is serious in building a youth force free from corruption, it should disband both the Youth Enterprise Fund and the Uwezo Fund," Atwoli said.
"These two funds have enticed our youth into abandoning their education at an early age to venture into business and benefit from monies readily available from the agencies," he said.
The COTU boss alleged that government officials are positioning their companies for tenders offered by the Youth and Uwezo Funds only to get the monies back into their pockets.
"It is even absurd that the same individuals are following up on the fund's repayment when they are aware that these funds are in their pockets. What a fallacy?," he said.
Atwoli wants the state to put the monies allocated to the agencies for sustainable viable and decent employment opportunities.