Sam Michuki has been appointed NYS director general and Clare Lwali, who held the post in acting capacity, moved to the Sports ministry.
Michuki was senior NYS deputy director in charge of the Kibra slums upgrading project before he was relieved of his duties by Anne Waiguru, who was then Devolution CS.
Public Service Principal Secretary Lilian Omollo made the announcement of his appointment.
Nelson Githinji, who was director general, stepped aside over corruption allegations in November 2015.
The NYS directorate was moved from the Devolution ministry after Waiguru resigned.
The fate of some 184 field officers, unsure of when their Sh64 million night allowances will be paid, hangs in the balance.
The officers are demanding Sh4,200 a day for 21 days for the months of December 2014, January, February and March 2015.
They said Lwali, who was moved on Friday, had made progress in pushing for the payment for digging dams in all counties, a project that has stalled.
Lwali wrote to the Treasury about the matter
"The change took place without a handover ceremony. We would like the new acting boss to be mindful and make sure we are paid," a field officer said.
The NYS has been in the spotlight since June 2015 over the Sh791 million allegedly embezzled during former Devolution CS Anne Waiguru's tenure.
Planning Principal secretary Peter Mangiti and Githinji have been charged in court over the loss.
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