NAIROBI, Kenya — The government spent the entire Sh1.032 billion allocated to the flagship Nyota youth empowerment programme in its first year on office operations and consultancy fees, leaving more than a million young applicants without loans or training, a new official report shows.
According to the Micro and Small Enterprises Authority (MSEA) annual report for the 2024/25 financial year, none of the funds disbursed under the National Youth Opportunities Towards Advancement (Nyota) project were used for start-up capital or skills development, despite overwhelming demand from young Kenyans.
Instead, the authority said the money was fully absorbed by administrative costs, including the purchase of computers and laptops, as well as consultancy services.
“During the 2024/25 financial year, the authority received a total of Sh1.032 billion for Nyota and was able to absorb 100 per cent of the amount on administrative activities and consultancy services,” MSEA said.
Bulk of funds went to operations
Documents reviewed show that consultancies and office operations accounted for 84.4 per cent of the World Bank funding allocated to Nyota during the year.
The findings are further corroborated by the Auditor General, who revealed that by June 2025—more than a year after the programme was officially launched—no substantive project activities had been rolled out.
A Sh33 billion youth programme
Nyota is a Sh33 billion programme, 90 per cent financed by the World Bank, with the Kenyan government contributing the remaining 10 per cent.
Of the Sh29.5 billion World Bank share, Sh25.8 billion is a loan that Kenya must repay with interest.
The programme targets Kenyans aged 18 to 29, offering start-up loans of Sh20,000, Sh50,000 or Sh200,000, alongside entrepreneurship training, mentorship, and links to financing and markets.
MSEA says Nyota is designed to unlock youth economic potential by boosting employability, entrepreneurship and self-reliance, particularly among vulnerable and underserved groups.
Over one million youths applied
The report highlights unprecedented demand, with more than one million young people applying in the first phase—50 times the initial target of 20,000 beneficiaries—underscoring the depth of economic hardship facing Kenya’s youth.
MSEA said it carried out eligibility screening, including aptitude tests, to identify candidates for business development training, mentorship and start-up capital support.
The disclosures come even as Nyota continues to be publicly promoted, with President William Ruto presiding over high-profile exercises to distribute cash to beneficiaries under subsequent phases.
Tighter controls after past audit
Nyota is expected to benefit 800,000 youths by December 2028, building on lessons from the now-defunct Kenya Youth Employment and Opportunities Project (KYEOP), which ended in 2024.
Last year, the World Bank introduced blockchain technology to track Nyota funds, following an audit of KYEOP that found some beneficiaries could not be traced despite billions of shillings being disbursed.
The lender said impact evaluations and tracer studies will be conducted throughout Nyota’s implementation to ensure accountability and improve outcomes.
“The KYEOP audit helped inform the design of the Nyota project, particularly the inclusion of enhanced monitoring systems and digital tools for tracking performance and outcomes,” the World Bank said.
