The government has moved to end weeks of uncertainty for thousands of young entrepreneurs enrolled in the National Youth Opportunities Towards Advancement (NYOTA) programme, confirming that the second tranche of start‑up grants will be released by June 30.
Principal Secretary for MSMEs Development Susan Mang’eni said all eligible beneficiaries will be paid at once, marking a shift from the phased cluster‑based rollout used during the first disbursement.
Mang’eni explained that the delay was caused by budgetary constraints following adjustments to the project’s implementation framework. Initially, the World Bank‑supported programme had been designed to release funds in three separate intake lots. However, overwhelming interest from Kenyan youth forced a rethink of the rollout.
“The government acknowledges the increasing inquiries and concerns from beneficiaries on the disbursement of the second tranche and regrets the delay, which was caused by the compression of the project and concentration of the attendant budgetary requirements in one financial year,”
Mang’eni said in her statement issued on Tuesday, June 2
The ministry subsequently held consultations with President William Ruto and World Bank officials, leading to a decision to restructure the programme into a one‑off nationwide intake. This approach was adopted to avoid prolonged waiting periods for prospective beneficiaries and to ensure that all eligible applicants were assessed and enrolled simultaneously.
The redesign was also driven by the sheer scale of demand. Government estimates indicate that at least two million youths applied for the Business Support Component, making the phased rollout impractical. Officials noted that processing beneficiaries in stages would have meant further delays for those in later cohorts, hence the decision to consolidate the selection process into a single exercise.
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Despite the selection change, the payment structure remained unchanged. Beneficiaries are still receiving their support in two tranches. Most have already received the first KSh25,000, while the second tranche is scheduled for release by June 30, 2026, completing the support package.
The confirmation is expected to ease anxiety among thousands of young entrepreneurs who had grown increasingly concerned about the delayed funding. For many, the grants represent a critical lifeline to launch or expand their businesses, and the assurance of payment marks a significant step in restoring confidence in the programme.
The NYOTA initiative, backed jointly by the World Bank and the Kenyan government, is designed to empower youth by providing capital and mentorship to spur entrepreneurship and job creation.
By Masaki Enock
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