NAIROBI, Kenya- Principal Secretary for Micro, Small and Medium Enterprises (MSME) Development Susan Mang’eni has explained why some beneficiaries of the National Youth Opportunities Towards Advancement (NYOTA) Programme received Sh19,000 instead of the expected Sh22,000 during the latest round of fund disbursements.
Her clarification follows concerns from some beneficiaries who questioned the reduced amount credited to their accounts during the programme’s second phase.
Speaking during an interview with NTV on Saturday, Mang’eni said the difference was linked to the programme’s mandatory savings component, which is intended to promote financial discipline and enable beneficiaries to qualify for additional support.
“The reason why some of them received Sh19,000 instead of Sh22,000 is because they withdrew all their savings and the project is not yet completed,” she said.
Savings Component
Mang’eni explained that under the NYOTA Programme, part of the funds allocated to beneficiaries is placed into savings accounts as part of a strategy to encourage young entrepreneurs to develop a saving culture while growing their businesses.
According to the PS, the savings are divided into short-term and long-term accounts.
“The project seeks to cultivate a saving culture among our young people,” she said.
She noted that beneficiaries who retain their savings until the completion of the programme become eligible for a matching grant provided through a partnership with the National Social Security Fund (NSSF) under the Haba Haba savings platform.
“The project has provided a matching grant. If you save, after the end of the project you also receive a matching grant with a ratio of two to one,” Mang’eni explained.
Early Withdrawals Affect Benefits
The Principal Secretary said some participants withdrew their savings before completing the programme, making them ineligible for the full range of benefits attached to the initiative.
“What will you do with this matching grant that is supposed to help de-risk your business if you have already withdrawn your savings?” she posed.
She said the savings requirement was deliberately incorporated into the programme to help young entrepreneurs build financial resilience and cushion their businesses against future challenges.
About the NYOTA Programme
The National Youth Opportunities Towards Advancement (NYOTA) Programme is a five-year youth economic empowerment initiative implemented by the Government of Kenya with support from the World Bank.
The programme targets vulnerable and unemployed youth aged 18 to 29 years, and up to 35 years for persons with disabilities, who have a Form Four education or below.
In addition to providing startup capital, NYOTA offers business skills training, mentorship and financial support aimed at helping young people establish or expand small enterprises.
The initiative is built around three pillars—skills development, financing and mentorship—with the goal of promoting youth entrepreneurship, creating jobs and improving the sustainability of small businesses across the country.
