James Tembur has been appointed the acting officer in charge of the National Youth Service pending administrative reorganisation.
Tembur is the agency's Deputy Director General.
The announcement was made on Saturday by Margaret Kobia, who is the Cabinet Secretary in charge of the Public Service, Youth and Gender Affairs ministry.
"To ensure continued and smooth running of the day to day affairs of the service, Tembur is required to exercise his new role with immediate effect and keep the Cabinet Secretary updated on a weekly basis," a notice stated.
"The Cabinet Secretary accords him all support and facilitation necessary for the effective execution of his duties."
The agency has been on the spot over the years over allegations of the theft of billions of money.
The latest casereportedly concerns a sum of Sh10 billion. It is said senior government officials colluded with other people to steal the money from the agency.
Earlier today, Opiyo Wandayi, who is Chairman of the National Assembly Public Accounts Committee, said all state officials who are culpable will pay the price.
While noting that Kenyans have had enough of the "circus", Wandayi said they should resign for investigations as stepping aside is not enough.
Youth Affairs Principal Secretary Lillian Omollo and Director General Richard Ndubai stepped aside on Friday for a period of three months.
On Saturday, Omollo confirmed writing to the President on her move and said she will cooperate with investigators.
Wandayi said, however, that: "Stepping aside is a strange terminology that's not recognised by law. The least that the public expects of anyone linked, however remotely, to the NYS fraud is immediate and total resignation from office."
Details: