NAIROBI, Kenya – At least nine million Kenyans who defaulted on the Hustler Fund loans will be locked out of the government’s new National Youth Opportunities Towards Advancement (NYOTA) programme.
The government said the initiative, developed in partnership with the World Bank, seeks to empower youth through grants and business support but will not include those with outstanding Hustler Fund debts.
Principal Secretaries from various ministries were on Monday dispatched across the country to rally support for the NYOTA programme, which targets the creation of 100,000 youth-led enterprises.
Under the plan, up to 70 young people in each of the country’s 1,450 wards are set to receive grants of Ksh50,000 each to start or expand small businesses.
However, officials made it clear that beneficiaries must have a clean record with previous government funding programmes.
Speaking during a sensitization forum at the Maasai National Technical Institute in Kajiado County, Irrigation Principal Secretary Ephantus Kimotho said those with unpaid Hustler Fund loans will be disqualified during the verification process.
“They are going to go through a long process of verification, which will start by applying,” said Kimotho. “Those who have some debts with Hustler Fund may not qualify.”
Social Protection PS Joseph Motari, speaking separately in Migori County, echoed the same warning, saying those who failed to repay their Hustler Fund loans had shown they “cannot be trusted” with public money.
“You were not able to repay because you went away with money. Please clear your Hustler Fund; you have to be in good standing,” Motari said.
The Hustler Fund, launched in 2022 shortly after President William Ruto took office, was meant to provide affordable credit to small traders and low-income earners. But it has faced significant repayment challenges, with billions still unpaid.
On September 12, the Principal Secretary for Micro, Small and Medium Enterprises Development Susan Mang’eni revealed that defaulters owe the state Ksh5 billion.
She added that persistent non-payers would also be barred from accessing other government-backed financial schemes, including the Social Health Authority’s “Lipa Pole Pole” programme.
The NYOTA initiative marks the government’s latest attempt to refocus its youth empowerment agenda, prioritizing financial discipline and accountability among beneficiaries.
