The Government of Kenya, working with the World Bank, said it will disburse the second tranche of start-up capital under the National Youth Opportunities Towards Advancement (NYOTA) project by June 30, 2026, as it addresses budgetary constraints that had slowed the rollout.
Principal Secretary for the State Department for MSMEs Development, Susan Mang’eni, made the announcement and said the programme will deliver funds to all beneficiaries at the same time, replacing the earlier phased disbursement approach.
The NYOTA project runs for five years and focuses on youth employment and enterprise. It aims to equip vulnerable and marginalised young people across Kenya through skilling, recognition of prior learning, apprenticeships, mentorship, business training, savings promotion, and access to market linkage, including “Access to Government Procurement Opportunities (AGPO)” training.
The programme also supports young people in refugee camps in Kakuma and Dadaab, along with youth in host communities.
Through a multi-agency framework, the project involves 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.
The government said it officially started implementation in March 2025 through the Business Support Component, drawing nearly 2 million applicants across the country.
So far, 122,147 youth from all 1,450 wards across Kenya have benefited from the programme. The government selected beneficiaries through an Entrepreneurial Aptitude Test (EAT), and the programme has provided business development support such as classroom training, mentorship, and initial start-up grants of Ksh. 25,000. It also retains Ksh. 3,000 under the NSSF Haba Haba savings scheme.
The government reports that more than 99% of beneficiaries have already set up businesses after completing training and mentorship sessions, and it describes this outcome as proof of strong entrepreneurial readiness among Kenyan youth.
The programme also contracted 46 business development firms nationwide, mobilizing more than 3,600 trainers and over 5,500 mentors, many of them young graduates, to guide business start-up and growth.
After finishing the second Business Development Support training in April, the government said beneficiaries will now receive the second tranche of capital alongside an additional round of mentorship.
The government acknowledged that disbursement delays occurred because it compressed programme financing into a single fiscal year, which strained budget allocations. It added that the National Treasury is addressing the fiscal gaps to support smooth implementation and ensure the completion of the first phase within the current financial year.
