By Our Reporter
The Government has announced that the second tranche of business start-up capital under the National Youth Opportunities Towards Advancement (NYOTA) Project will be disbursed by June 30, 2026.
Speaking during a press briefing in Nairobi on Tuesday, Principal Secretary for Micro, Small and Medium Enterprises Development, Susan Mang’eni, confirmed that all eligible beneficiaries will receive the funds simultaneously, marking a departure from the phased approach initially envisioned for the programme.
Mang’eni said the World Bank-supported project had originally planned to roll out its Business Support Component through three separate intake phases. However, overwhelming interest from young people across the country prompted the Government to redesign the programme.
“The Government acknowledges the increasing inquiries and concerns from beneficiaries regarding the disbursement of the second tranche and regrets the delay, which has been occasioned by the compression of the project and concentration of attendant budgetary requirements within one fiscal year, necessitating budgetary enhancements,” she said.
The PS noted that following consultations involving President William Ruto and leadership from the World Bank, the Government resolved to implement the Business Support Component as a one-off nationwide intake.
According to the Ministry, the revised approach allows all eligible applicants to be assessed and enrolled at once instead of processing beneficiaries in staggered cohorts. The decision was informed by the high number of applications received, estimated at more than two million youth nationwide.
Despite the change in beneficiary selection, the funding model remains unchanged. Beneficiaries receive support in two tranches, with most having already received the first payment of KSh25,000. The second tranche, expected by June 30, will complete the start-up support package.
The Government reported that more than 99 percent of beneficiaries from the first cohort have already established businesses after undergoing mentorship and entrepreneurship training, describing the outcome as evidence of the programme’s positive impact on youth enterprise development.
Mang’eni attributed the delay in releasing the second tranche to budgetary constraints within the current financial year, but assured beneficiaries that efforts were underway to resolve the challenge.
“The National Treasury is working to address the constraints and ensure timely implementation,” she said, urging beneficiaries to remain patient as the process is finalized.
The NYOTA Project is a five-year youth empowerment programme implemented by the Government in partnership with the World Bank. It seeks to create employment and enterprise opportunities for vulnerable and marginalized youth across Kenya, including those living in Kakuma and Dadaab refugee camps and surrounding host communities.
The programme is implemented through a multi-agency framework involving the National Industrial Training Authority, Micro and Small Enterprises Authority, National Employment Authority and National Social Security Fund.
