•The fund will also provide resources for the purchase, maintenance, renewal, and replacement of plant, machinery, and equipment of the service.
•To curb corruption incidents, the law provides a jail term of five years or Sh10 million fine for any person who misappropriates any funds or assets of the Fund.
Image: PSCU
The government has proposed to establish a National Youth Service Fund where all earnings from the agency’s businesses will be channelled.
National Treasury Cabinet Secretary Ukur Yatani, in draft regulations establishing the NYS Commercial and Enterprise Fund, said the initial capital of the fund would be Sh2 billion.
The monies are to be appropriated by the National Assembly in the financial year 2021-22 for purposes of commercializing some of the operations of the service as well as initiate, support, and facilitate the service’s enterprise activities.
The fund will also provide resources for the purchase, maintenance, renewal, and replacement of plant, machinery, and equipment of the service.
The regulations say the fund will also support any activities that will go a long way to sustain the kitty and salvage the struggling NYS businesses.
NYS user charges or fees, income generated from commercial and enterprise activities, income from disposal of the service assets, and income from investment proceeds will be deposited to the fund.
Proceeds from the agriculture and value addition, services, manufacturing, processing, construction, hire of vehicles, plant, machinery, equipment, and facilities, as well as training will be netted.
“The Administrator of the Fund shall be the Director-General of the Service,” the proposed regulations, which revoke the mechanical and transport fund, read.
With the approval of the council, the director-general may invest NYS funds not immediately required in government securities as the National Treasury will approve.
NYS boss will also be allowed to deposit cash not immediately needed with banks for purposes of earning interests from such deposits.
To curb corruption incidents, the law provides a jail term of five years or Sh10 million fine for any person who misappropriates any assets of the Fund.
Persons, who cause another to misappropriate or apply the funds of the Fund, otherwise than in the manner provided in the regulations, will commit an offence.
The guiding principle is that persons handling the fund would ensure transparency, accountability and integrity.
The lot would be required to ensure prudent use of public funds, put in place clear and accurate fiscal reporting and undertake activities that contribute to social responsibility and care for the environment.
Also provided in the regulations is that the fund will only be put to activities that result in sustainability and bring value for money to taxpayers.
Yatani said the term of the fund will be 10 years and can be reviewed mid-way for assessment of its effectiveness.
The fund’s account books will be reviewed by the Office of the Auditor-General with the administrative costs capped at three per cent of the budget of the fund.
“The NYS council may recommend a higher amount not exceeding five per cent of the approved budget with the concurrence of the Cabinet Secretary responsible for the service for approval by the Cabinet Secretary,” the new rules read.
NYS will, if the regulations sail through, retain its funds at the lapse of the financial year for purpose of operations and facilitating the fund’s activities.
The service was in 2018 forced to withdraw its buses from the road for lack of budgetary provision to fund the maintenance and other operational costs.
During the service’s pass-out parade for 7,479 recruits on Friday, President Uhuru Kenyatta lauded the NYS management for making the service more effective.
He hailed the financial controls, procurement procedures, and administrative supervision employed by the agency’s new governing council.
“The strong management systems have resulted in higher productivity and better efficiency. It has also allowed young recruits to acquire useful skills,” President Kenyatta said.
Among the transformations was the establishment of four committees of the council, the crucial one being the audit and risk committees charged with ensuring transparency in undertakings.
President Kenyatta said the changes have borne fruit and has elevated NYS to the level where it is playing a significant role in his Big Four plan.
The fund will operate in an almost similar fashion as the Kenya Prisons Services’ Enterprise and Revolving funds credited for the sustainable operations of the commercial side of the service.
Any debt owed by or to the former Fund shall on the commencement of the regulations, become a debt owed by or to the National Youth Service Commercial and Enterprise Fund.
Edited by Kiilu Damaris