Gov't announces June 30 disbursement of NYOTA youth business grants

Citizen Reporter
By Citizen Reporter June 02, 2026 08:57 (EAT)
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Gov't announces June 30 disbursement of NYOTA youth business grants

Principal Secretary for the State Department for MSMEs Development, Susan Mang’eni. PHOTO| FILE

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The Government of Kenya, in partnership with the World Bank, has announced that the second tranche of start-up capital under the National Youth Opportunities Towards Advancement (NYOTA) project will be disbursed by June 30, 2026, as it moves to resolve budgetary constraints that had delayed the rollout.

The announcement was made by Principal Secretary for the State Department for MSMEs Development, Susan Mang’eni, who said all beneficiaries will receive the funds simultaneously, marking a shift from the earlier phased disbursement approach.

The NYOTA project is a five-year youth employment and enterprise initiative aimed at empowering vulnerable and marginalised young people across the country through skilling, recognition of prior learning, apprenticeships, mentorship, business training, savings promotion, and access to market linkages, including Access to Government Procurement Opportunities (AGPO) training. The programme also extends to youth in refugee camps in Kakuma and Dadaab, as well as host communities.

Implemented through a multi-agency framework, the project brings together the Ministry of Youth Affairs, Creative Economy and Sports, the Ministry of Cooperatives and MSMEs Development, and the Ministry of Labour and Social Protection. Key implementing agencies include NITA, MSEA, NEA, and NSSF.

According to the government, the project officially began implementation in March 2025 through its Business Support Component, attracting nearly 2 million applicants nationwide. 

So far, 122,147 youth drawn from all 1,450 wards across Kenya have benefited from the programme. Beneficiaries were selected through an Entrepreneurial Aptitude Test (EAT) and have undergone business development support, including classroom training, mentorship, and initial access to start-up grants of Ksh.25,000, with Ksh.3,000 retained under the NSSF Haba Haba savings scheme.

The government reports that more than 99% of beneficiaries have already established businesses following training and mentorship sessions, describing it as evidence of strong entrepreneurial readiness among Kenyan youth.

The programme has also engaged 46 business development firms nationwide, deploying over 3,600 trainers and more than 5,500 mentors—many of them young graduates—to support business start-up and growth.

Following completion of the second Business Development Support training in April, beneficiaries are now set to receive the second tranche of capital alongside another round of mentorship.

The government acknowledged delays in the disbursement, attributing them to the compression of programme financing within a single fiscal year, which has strained budgetary allocations. It said the National Treasury is working to address the fiscal gaps to ensure smooth implementation and completion of the first phase within the current financial year.

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