National Youth Service (NYS) Director General Richard Ndubai and Youth Principal Secretary Lillian Omollo have stepped aside to pave way for investigations into the loss of Sh10 billion at the NYS.
There has been pressure for the two to resign following the loss of the money in Kenya's latest corruption scandal.
Those who are said to be at the centre of the graft case are senior government officials who are reported to have colluded with other people to steal the money which would have been used to improve the taxpayers' livelihood.
Those accused to have stolen the cash are said to have used proxy companies to swindle the money.
The loss came less than a year after President Uhuru Kenyatta was sworn in for a second term in office which he said he would use to fight corruption.
The Sh10 billion loss is the second scandal to hit NYS following another loss of Sh791 million when current Kirinyaga Governor Ann Waiguru was the Devolution Cabinet Secretary. Waiguru resigned over the scandal and joined politics.
Richard Ndubai, one of Kenya's longest serving public servant was appointed NYS Director General in January and was expected to streamline operations at the institution.
Some of the companies listed as beneficiaries of the Sh10 billion scam are the same ones accused of benefiting from the first Sh791 million scandal.