The government has launched a Sh33 billion youth startup fund under the National Youth Opportunities Towards Advancement (NYOTA) project, aiming to address the country’s growing unemployment challenges. The initiative targets young Kenyans with financial support and mentorship to establish and grow their own businesses.
At the official launch at Kakamega Youth Polytechnic, Cooperatives and Micro, Small, and Medium Enterprises (MSME) Cabinet Secretary Wycliffe Oparanya announced that 110,000 young people have been selected as the first beneficiaries, with each set to receive Sh50,000 in startup capital. The funds will be disbursed in phases, accompanied by guidance from business development experts to help the youth launch sustainable enterprises.
“This is a crucial sector, which is why the government has partnered with the World Bank to allocate Sh33 billion over a five-year period. Each youth will receive Sh50,000 in startup capital to begin an income-generating activity,” Oparanya said as quoted in the My Gov.
He emphasized the central role of the MSME sector in Kenya’s economy, noting that it accounts for nearly 98 percent of all businesses and employs millions across the country. “With 70 percent of Kenya’s population below the age of 35, about 35 million people, 20 million are able-bodied and capable of working,” he added.
The programme attracted 1.4 million applications from young people aged 18 to 29 and up to 35 for persons with disabilities. Following a rigorous vetting process, 110,000 applicants were shortlisted across 1,450 wards nationwide.
Oparanya highlighted that the informal sector already employs 17 million young people, contributing about 40 percent of Kenya’s Gross Domestic Product (GDP). He stressed that the success of NYOTA will rely on personal responsibility, pledging continued government support for the initiative.
“Discipline and individual effort are key. I encourage the youth to form strong groups to position themselves for government and county contracts under the 30 percent AGPO programme,” he said, urging young Kenyans to embrace entrepreneurship as a solution to the country’s youth unemployment crisis.
The National Youth Opportunities Towards Advancement (NYOTA) Project is a five-year initiative designed to unlock the potential of Kenya’s youth by creating income-generating opportunities, fostering savings habits, and promoting entrepreneurship nationwide.