The trial of 35 people in the loss of Sh167 million at the National Youth Service (NYS) will proceed minus two accused parties, a Nairobi court ruled on Tuesday.

Senior Principal Magistrate Lucas Onyina on Tuesday said the case will proceed without Mr James Katululu and his company, Ameritrade Limited.

Mr Onyina said the charges against Mr Katululu will be held in abeyance, a state of temporary suspension, as the trial of the rest of the accused continues.

The magistrate noted that a warrant for the suspect's arrest was still in force so should he be arrested or present himself in court, appropriate orders will be issued.

Mercy Gateru, Senior Assistant Director of Public Prosecutions, had urged the court to proceed with the case, saying a delay until the arrest would be prejudicial to the other suspects.

In the trial former Youth Affairs Principal Secretary Lilian Mbogo Omollo, former NYS Director-General Richard Ndubai and 28 other civil servants, as well as traders from three companies, are accused of conspiring to defraud the service of Sh167 million.

They allegedly committed the offence between April 2016 and May 13 2017.