When Kithure Kindiki, Deputy President of Kenya announced a Sh28 billion cash infusion on 2 October 2025, he wasn’t just unveiling another budget line – he was rolling out the first massive grant wave of the NYOTA programme, aimed at more than 100,000 grassroots businesses across the country.
The proclamation came at an Empowerment Forum for Small‑Scale Traders in Lari Constituency, Kiambu County. Kindiki told a packed hall that each of Kenya’s 1,450 wards would see 70 enterprises receive Sh50,000 each, a move designed to spark entrepreneurship where capital is scarce.
Kenya’s youth unemployment rate has hovered around 20 % for several years, prompting successive governments to try job‑creation pilots that fizzled out after a few months. The National Youth Opportunities Towards Advancement (NYOTA) project is the first multi‑year, multi‑agency effort of its scale. Launched in 2023, the five‑year initiative is shepherded by Dr. Wycliffe Oparanya, Cabinet Secretary for Cooperatives & MSMEs Development, and Susan Mang'eni, Principal Secretary for MSMEs Development. Their mandate: turn the informal sector into a launchpad for sustainable jobs.
Financing comes from the World Bank, which pledged US$120 million (about Sh13 bn) in 2024 to back the grant component, apprenticeship placements, and a Recognition of Prior Learning (RPL) scheme. The funding model mirrors successful programmes in Rwanda and Ghana, where small cash grants coupled with mentorship led to measurable increases in business survival rates.
Here’s the thing: the budget isn’t a single lump sum. It’s broken into four pillars:
According to Kindiki, the first cohort of 54,000 beneficiaries will start receiving cash in September 2025, timed to the official project launch. By the end of the first year, the government expects to have disbursed roughly Sh13 bn, catalysing at least 300,000 jobs indirectly through supply‑chain effects.
When asked whether Sh50,000 is enough, Kindiki shrugged off the criticism: "Many people think Sh50,000 is not impactful enough, but for someone whose business has Sh10,000 in stock, this can significantly boost their enterprise." At the forum, a vendor from Kiambu Town nodded, saying the grant could buy additional stock to meet rising demand during the harvest season.
Yet not everyone is convinced. Youth activist Aisha Njeri from the Nairobi Youth Coalition warned that "grant fatigue" could set in if follow‑up support such as mentorship and market access does not materialise. She cited a 2022 pilot where 70 % of recipients lost their businesses within six months due to lack of guidance.
On the other side, private‑sector partners are upbeat. The CEO of African Financial Group highlighted that the programme will create a pipeline of vetted suppliers for their procurement needs, reducing the cost of sourcing locally.
Economist Prof. James Mwangi of the University of Nairobi ran a quick simulation using data from the World Bank’s grant impact studies. He estimates that each Sh50,000 grant could generate up to Sh250,000 in additional turnover within the first year, assuming a modest 5‑fold multiplier effect.
That translates to an aggregate economic boost of roughly Sh2.5 trillion if the programme hits its target. Moreover, the apprenticeship and OJE components are projected to absorb 200,000 youth annually, supplementing the 500,000 digital jobs promised under the Kazi Mtandaoni initiative.
The twist is that the NYOTA programme also feeds into Kenya’s broader goal of boosting its “creative economy” – a sector the State Department for Youth Affairs earmarked for a 15 % contribution to GDP by 2030.
Deputy President Kindiki promised that the next phase will extend grant eligibility to persons with disabilities up to age 35, a demographic that has historically been left out of mainstream MSME policies. He also hinted at a digital monitoring platform slated for launch in early 2026 to track grant utilisation in real‑time.
President William Ruto reinforced the commitment during International Youth Day on 12 August 2025 at Masinde Muliro University, Kakamega. Ruto noted that over 1 million applications had already poured in, underscoring the pent‑up demand for state‑backed entrepreneurship support.
In the coming months, the Ministry of Youth Affairs will roll out a public awareness campaign, leveraging radio, SMS, and community meetings to ensure that every eligible trader in the 1,450 wards knows how to apply.
Kenya’s post‑2007 election period saw the birth of the Youth Enterprise Development Fund, which, despite disbursing over Sh10 bn, suffered from allegations of mismanagement. The 2013 Constitution introduced a clearer mandate for youth empowerment, but implementation lagged.
NYOTA represents a consolidation of lessons learned: tighter oversight through the National Social Security Fund (NSSF), mandatory mentorship contracts, and a transparent digital ledger backed by the World Bank’s monitoring tools.
Comparatively, Ethiopia’s Youth Employment Programme, launched in 2020, allocated a similar budget but focused more on job placement rather than grant support. Early evaluations suggest that Kenya’s blended approach – cash plus capacity‑building – may yield higher long‑term sustainability.
Rural traders receive a direct Sh50,000 cash boost, which many say can double their inventory levels. Coupled with mentorship from local cooperatives, the grant helps them meet market demand during peak seasons, reducing reliance on costly informal lenders.
Applicants must be aged 18‑29 (up to 35 for persons with disabilities), own a registered micro‑enterprise, and demonstrate that their business employs fewer than ten people. They also need to submit a one‑page business plan outlining how the grant will be used.
The inaugural cohort of 54,000 beneficiaries is scheduled to receive funds in September 2025, coinciding with the official NYOTA launch ceremony in Nairobi.
The World Bank provides the bulk of the financing (approximately US$120 million) and supplies the digital monitoring system that tracks grant allocations, ensuring transparency and accountability.
The Ministry of Youth Affairs will publish quarterly impact reports, measuring metrics such as business survival rate, revenue growth, job creation, and beneficiary satisfaction through surveys and the digital tracking dashboard.
