NAIROBI, Kenya, Jun 3 — The government will disburse the second tranche of the NYOTA business support start-up capital on June 30 in a simultaneous nationwide payout benefiting 122,147 youth across all 1,450 wards, the Ministry of Co-operatives and Micro, Small and Medium Enterprises (MSMEs) Development has announced.
The programme, implemented under the State Department for MSMEs Development through the National Youth Opportunities Towards Advancement (NYOTA) Project, is part of a five-year job creation pipeline supported by the Government of Kenya in partnership with the World Bank.
According to the Ministry, the disbursement will mark a key milestone in the rollout of the business support component, which targets vulnerable and marginalised youth through skilling, entrepreneurship training, mentorship, apprenticeships, and access to markets, including AGPO-linked opportunities.
“The disbursement for the second tranche of business support start-up capital will happen by 30th June 2026, and all the beneficiaries will receive the grants at the same time,” the Ministry said in a statement issued Tuesday.
The NYOTA Project, which began implementation in March 2025, attracted nearly two million applicants, reflecting what the government describes as a strong surge in youth entrepreneurial ambition nationwide.
Initially designed to roll out in phases, the programme was later restructured into a one-off national intake following overwhelming demand and policy intervention, allowing for faster coverage and avoiding prolonged waiting periods for beneficiaries.
So far, 122,147 youth have been selected and are actively participating in the programme after successfully undergoing the Entrepreneurial Aptitude Test (EAT) and subsequent business development training. Many beneficiaries have already received the first tranche of KSh 25,000, with KSh 3,000 retained under the NSSF Haba Haba savings scheme.
The Ministry reports that more than 99 percent of beneficiaries have already established businesses following mentorship and classroom-based business development support.
The programme has also engaged 46 business development firms nationwide, with over 3,600 trainers and 5,500 mentors supporting youth entrepreneurs in business setup and growth.
The government acknowledged delays in the second tranche disbursement, attributing them to fiscal constraints arising from the compression of project financing within a single financial year. It said discussions with the National Treasury are ongoing to resolve budgetary adjustments.
“We are grateful to the National Treasury for actively working to resolve the fiscal space constraints,” the statement added.
The Ministry urged beneficiaries to remain patient as final administrative processes are completed and warned against misinformation regarding the disbursement schedule.
“We also wish to urge beneficiaries and members of the public to remain vigilant against misinformation and rely only on official communication channels,” it said.
The NYOTA Project is expected to continue scaling into its next phase in the coming financial year, with potential expansion of support mechanisms for youth enterprises.
