The Nyota youth programme, designed to empower young entrepreneurs across Kenya, spent its entire first-year allocation of Sh1.032 billion on administrative expenses and consultancy fees, leaving no funds for the intended beneficiaries, according to a recent report from the Micro and Small Enterprises Authority (MSEA).
The authority’s annual report for the 2024/25 financial year shows that the money was used to purchase computers, laptops, and cover office operations, with no start-up loans or business training disbursed. MSEA confirmed that all the funds received were consumed by operational and consultancy activities.
“During the 2024/25 financial year, the authority received a total of Sh1.032 billion for Nyota and was able to absorb 100 per cent of the amount on administrative activities and consultancy services,” the Authority said.
Additional documents indicate that spending on consultancy services and office management accounted for 84.4 per cent of the World Bank contribution to the programme that year.
The Auditor General also pointed out that more than a year after the programme officially began, as of June 2025, no substantial project activities had been implemented.
Nyota is a Sh33 billion initiative, with the World Bank providing 90 per cent of the funds and the Kenyan government covering the remaining 10 per cent. Out of the Sh29.5 billion from the World Bank, Sh25.8 billion is a loan that will need to be repaid with interest.
The programme targets Kenyans aged 18 to 29, offering start-up loans of Sh20,000, Sh50,000, or Sh200,000, alongside training in entrepreneurship and access to financing and markets.
“The project is aimed at unlocking the economic potential of youth across Kenya by enhancing employability, entrepreneurship, and self-reliance, especially among vulnerable and underserved youth groups,” MSEA said.
Demand for the programme was far beyond expectations, with more than one million young people applying during the first phase—50 times the original target of 20,000—highlighting the widespread economic challenges facing youth.
MSEA said it conducted eligibility checks, including aptitude tests, to identify participants for business mentoring, training, and start-up capital support.
The findings come as the National Youth Opportunities Towards Advancement (Nyota) project seeks to boost youth entrepreneurship, with President William Ruto personally overseeing events where cash is handed to selected beneficiaries.
The programme aims to benefit 800,000 young people by December 2028 and builds on lessons from the Kenya Youth Employment and Opportunities Project (KYEOP), which concluded in 2024.
About 600,000 youth are expected to receive digital training on government procurement opportunities and other socio-economic programmes.
To improve fund tracking, the World Bank introduced blockchain technology for Nyota last year, after an audit of KYEOP revealed that some beneficiaries could not be traced despite receiving large sums of money.
“Furthermore, impact evaluations and tracer studies will be conducted to gather robust evidence on effective interventions and necessary adjustments,” the Bank said.
The World Bank added that lessons from KYEOP informed the design of Nyota, including stronger monitoring systems and digital tools to track results.
“KYEOP audit helped an informed design of the Nyota project, in particular for including enhanced monitoring systems as well as the use of digital tools for tracking the performance and outcomes,” the Bank said.
