By Kepher Otieno - Reporter
Kenya, 6 January 2026 - The government has accelerated its bottom-up economic agenda with the rollout of the second phase of the NYOTA Project business start-up capital, targeting nearly 50,000 youth entrepreneurs across 27 counties.
The initiative, which blends grant financing, mandatory savings and structured mentorship, is increasingly being positioned as a cornerstone of Kenya’s MSME development strategy.
The NYOTA Project, implemented by the State Department for MSMEs Development, aims to empower more than 100,000 vulnerable youth across all 1,450 wards nationwide. Each ward is expected to support a minimum of 70 beneficiaries, signalling a deliberate attempt to decentralise enterprise financing and stimulate local economies from the grassroots.
Principal Secretary for MSMEs Development Susan Mang’eni said the programme reflects a shift from short-term cash transfers to sustainable enterprise support anchored on skills, discipline and market access.
“The NYOTA Project is not just about giving money to young people. It is about building enterprises that can survive, grow and create jobs within local communities,” Mang’eni said.
“By combining business skills training, start-up capital, savings and mentorship, we are laying a strong foundation for sustainable youth-owned businesses.”
She noted that the compulsory savings component—where KSh3,000 from each grant is channelled into an NSSF-managed Haba na Haba account—is intended to cultivate a savings culture while linking beneficiaries to formal financial systems.
“We want our youth to develop the habit of saving as they grow their businesses. This approach strengthens financial inclusion and provides long-term social protection beyond the initial grant,” Mang’eni added.
The second phase of disbursement, running from January 8 to January 16, 2026, follows an earlier rollout in Western Kenya, where 12,155 beneficiaries received KSh25,000 each, amounting to a total disbursement of KSh303.9 million. The upcoming phase will cover key economic zones including Rift Valley, Central Kenya, Eastern and Nairobi, with funds disbursed digitally through the NYOTA Pochi la Biashara wallet.
Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya said the programme is designed to unlock the productive potential of youth who have historically been excluded from formal credit markets.
“Access to affordable capital remains one of the biggest barriers facing young entrepreneurs. NYOTA is deliberately structured to bridge this gap by providing seed capital without the burden of high interest rates or collateral requirements,” Oparanya said.
He added that the initiative aligns with the government’s broader strategy to strengthen micro and small enterprises as engines of job creation and economic resilience.
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“When you empower youth to start and grow businesses, you are not only addressing unemployment but also expanding the MSME base that supports our cooperatives, supply chains and local industries,” Oparanya noted.
Beyond financing, all beneficiaries will undergo a two-month mentorship programme delivered by business development experts and experienced local entrepreneurs. The mentorship is expected to help new enterprises integrate into local markets, improve governance and prepare for scale.
Beneficiaries will also receive a second round of business development support training ahead of a planned second tranche of funding, a measure aimed at improving accountability and reducing enterprise failure rates that have plagued previous youth funds.
President William Ruto is expected to preside over regional disbursement and mentorship forums, underscoring the political priority attached to the programme.
Analysts say the high-level backing may enhance uptake and public confidence but will also heighten scrutiny on outcomes.
While the KSh 25,000 grant per beneficiary is modest, economists note that its impact lies in scale and structure.
Deployed across tens of thousands of youth, the funds could stimulate informal trade, agribusiness, services and value-added activities—particularly in counties with limited access to commercial credit.
The State Department has indicated that a third phase targeting 16 additional counties—including parts of the Coast, Nyanza and North Eastern regions—will be announced in due course.
As fiscal pressures persist and job creation remains a national priority, the NYOTA Project is shaping up as a key test case for whether structured micro-grants, backed by training and mentorship, can deliver durable youth enterprises and sustained economic growth.
NYOTA Project Capital Rollout Deepens State Push for Youth-Led MSME Growth
PS Mang’eni: NYOTA Project Builds Sustainable Youth Businesses Through Training and Capital
