State disburses Sh154m NYOTA funds, calls on sensible investment

 

Cabinet Secretary for Public Service Geoffrey Ruku Speaking at Kirubia Stadium in Tharaka Nithi County during the issuance of NYOTA Project funds in its second phase. [Phares Mutembei, Standard]

Cabinet Secretary for Public Service Geoffrey Ruku has called on the beneficiaries of government’s National Youth Opportunities Towards Advancement (NYOTA) Project to invest the grants wisely.

Ruku on Friday said only prudent financial management of the funds will enable the youth to sustain and grow their businesses to achieve long-term economic independence and successful ventures.

Speaking at Kirubia Stadium in Tharaka Nithi County during the issuance of NYOTA Project funds in its second phase to the youth from Embu, Tharaka Nithi, and Meru counties, Ruku said President William Ruto’s has allocated Sh154m to support youth entrepreneurship across in the three devolved units.

Out of the allocation, youths from Meru County received Sh81m, Embu County Sh41m and Tharaka Nithi Sh32m.

The minister said the programme was a key government action meant at tackling youth unemployment by providing youthful entrepreneurs with startup capital to establish and expand their various businesses.

President rollout of the second phase of the programme at Ulinzi Sports Complex in Nairobi, where he directed the Intergovernmental Budget and Economic Council (IBEC), working together with county governments, to develop and implement a two-year business permit waiver for all beneficiaries

Ruto said the waiver is intended to give young entrepreneurs time to establish and grow their businesses without the burden of licensing fees.

"Put in place a framework that will allow these young entrepreneurs to operate without licenses so that their businesses can take root," Ruto directed.

He further instructed the Ministry of Cooperatives and MSMEs Development to establish a national NYOTA identification mechanism to enable beneficiaries seamlessly access government services, incentives and opportunities aimed at supporting enterprise growth.

The President also directed government financing institutions, including the Youth Enterprise Development Fund, Uwezo Fund, Women Enterprise Fund, Kenya Industrial Estates and other relevant agencies, to develop dedicated financial products to support NYOTA beneficiaries as their businesses expand.

"As businesses grow, they require larger financing, better equipment, wider markets and stronger partnerships," he said.

The second phase of the NYOTA Project targets 122,000 beneficiaries across the country, with Sh3 billion set for disbursement.

And Ruku in his remarks warned the beneficiaries against diverting the funds to non-business activities, as he pointed out that the money must be treated as investment capital, not a 'handout'.

"The funds are intended to help you start or grow businesses that will generate income, create employment and transform your lives. Invest them prudently and make them work for you," Ruku stated.

He said: "Responsible use of the grants will not only improve the beneficiaries' livelihoods but also contribute to economic growth by creating jobs and stimulating local enterprises."

Ruku said the government was commited to financially empowering young people through targeted financial support and policies that create a conducive environment for entrepreneurship and enterprise growth.

"Kenya Kwanza administration remains focused on implementing programmes that expand economic opportunities for the youth and ensure development reaches all parts of the country," he added.

Ruku told the beneficiaries to adhere to financial discipline and proper planning, stating that they were crucial ingredients for building successful and sustainable business ventures.

President William Ruto during the rollout of the second phase of the programme at Ulinzi Sports Complex in Nairobi. [PCS]

The five-year World Bank-funded initiative was officially launched on November 7, 2025, targeting 820,000 vulnerable youth through skills training, business grants starting at Sh50,000 and job placements.

The first phase covered the Western cluster of Kakamega, Vihiga, Busia and Bungoma counties, with 12,155 youth receiving Sh25,000 each as the first tranche.

While defending the project, President Ruto reiterated that he will continue championing for government programs aimed at creating job and business opportunities for the Kenya's youth.

He noted that projects such as Nyota is playing a key role in changing the livelihoods of tens of thousands of young people across the country.

He castigated critics who have an issue with his close association with Nyota including its national roll out, saying the move is intentional to ensure the project succeeds.

And in March, the State Department of Micro Small and Medium Enterprises Development requested Parliament for an additional Sh5.2 billion in its budget to support remaining projects under the programme.

MMSME Principal Secretary Susan Mang’eni told Parliament that the ministry was expected to train 600,000 people to enhance access to the opportunity among youth, given the direction to condense the project activities to the current financial year, and that they required Sh2OO million.

She told the National Assembly Trade Committee that the Hustler Fund requires Sh2 billion but was only allocated Sh300 million, with the funds required to enhance liquidity for clients who had opted in and are unable to borrow, besides helping the fund review clients' borrowing limits.

But a previous Infotrak survey revealed that nearly two-thirds of Kenyans had no connection to the Nyota Fund despite government claims that the program empowers youth nationwide.

The Infotrak Research survey found 64 per cent of respondents had not participated in the program and did not know anyone who had, while 11 per cent applied but were rejected.

The data exposed a 75 per cent exclusion rate in a program the government had promoted as accessible to all young Kenyans seeking business grants and training.