The National Youth Service (NYS) bill that seeks to revamp operations at scandal ridden State agency, was among seven that President Uhuru Kenyatta assented to on Monday.
The bills were presented to him at State House in Mombasa, where he will the nation in ushering in the New Year.
The NYS Act establishes the agency as a corporate entity, whose functions include the undertaking of commercial activities.
Public Service Cabinet Secretary Margaret Kobia described the signing as phenomenal, saying the embezzlement of public funds at the service will become a thing of the past.
“The ministry is very happy with the new law. It will specifically strengthen the financial and procurement controls at the service bloated with corruption in the recent past,” Prof Kobia said.
She added that the NYS will become a strong outfit with clear internal controls, among them a 12- member council to oversee management, in clear segregation of duties.
There will also be an auditor to track use of public funds.
The council will be headed by a chairperson appointed by the president, and will be responsible for policy formulation, oversight and the general administration of the service.
The Public Service and Youth ministry principal secretary has been in charge of oversight.
The delinking will help the agency with self-sustenance by enabling it to generate funds for its operations.
The mess at the NYS has so far claimed the careers of former principal secretaries Lilian Mbogo (Sh460 million scandal) and her predecessor Peter Mangiti (Sh791 scandal).
Former NYS director generals, Nelson Githinji and Richard Ndubai, have been charged in court.
The other bills the president signed included thee Building Surveyors Bill of 2017, the Statute Law (Miscellaneous Amendments) Bill of 2018, the Sacco Societies (Amendment) Bill of 2018 and the Capital Markets (Amendment) Bill of 2018.
He also signed a vellum copy of the County Allocation of Revenue (Amendment) Bill of 2018, that was passed by both the Senate and the National Assembly.
The bill amends the revenue law by replacing the third schedule to include conditional allocations financed by development partners.
National Assembly Speaker Justin Muturi, his Senate counterpart Kenneth Lusaka, Attorney-General Paul Kihara, National Assembly Clerk Michael Sialai and the Senate's Jeremiah Nyegenye witnessed the signing.