Business

Government to scrap license fees for selected NYOTA youth traders

MSMEs Development Principal Secretary Susan Mang’eni said on Thursday, April 9, that the waiver will apply to NYOTA beneficiaries who have completed mentorship and officially started running their businesses. She added that counties had earlier committed to supporting the initiative by offering similar relief within their areas of jurisdiction.

The government is moving to ease the cost of doing business for young entrepreneurs under the NYOTA Fund by scrapping fees for business permits and licenses for selected beneficiaries, in a fresh effort aimed at helping them stabilize and grow their enterprises after training and mentorship.


The plan will be rolled out jointly with county governments as part of a wider support framework targeting youth-owned businesses already vetted through the programme.


MSMEs Development Principal Secretary Susan Mang’eni said on Thursday, April 9, that the waiver will apply to NYOTA beneficiaries who have completed mentorship and officially started running their businesses. She added that counties had earlier committed to supporting the initiative by offering similar relief within their areas of jurisdiction.


"On the question of licenses, it is true that all over the country, the county governments promised to give these young people a waiver in the respective jurisdiction," she said.


To avoid misuse of the programme, Mang’eni noted that the national government will work closely with counties by providing verified lists of approved beneficiaries to ensure only qualified traders access the relief.


"Our teams from Nairobi will be sharing the data of our beneficiaries with counties, especially those that have attended the mentorship period, because it shows that they have already launched their business," she added.


The announcement follows recent adjustments to the NYOTA Project Business Support mentorship schedule, which was extended to allow more participants to complete the required stages of training.


In a statement issued on Tuesday, March 31, Susan Mang’eni said the extension was necessary to accommodate those who had not yet completed the mentorship process.


"The NYOTA Project Business Support Component was scheduled to end today, 31st March 2026. We have, however, extended the deadline to Wednesday, 8th April 2026 to give the remaining 6% of the beneficiaries who are yet to turn up an opportunity for mentorship," she said.


She emphasized that mentorship remains a compulsory step before beneficiaries proceed to the next level of training under the programme.


"The mentorship is a mandatory requirement for the 2nd business skills classroom training. Beneficiaries who have not engaged with their mentors are urged to contact their constituency NYOTA Project coordinators immediately," she added.


Mang’eni further outlined the next phase of the programme, stating that classroom training will begin immediately after the mentorship period closes.


"The conclusion of the mentorship program will be followed by the 2nd mandatory business skills classroom training scheduled to commence on 15th April 2026 in all constituencies across the country," she explained.


She also confirmed that financial support will be released after completion of the training, detailing the structure of the second payout.


"Upon completion of the business skills classroom training, the beneficiaries will receive their 2nd tranche of the NYOTA Business Support startup capital of Sh25,000 (with Sh3,000 being savings under the Haba Haba scheme by NSSF), bringing the total disbursement to Sh50,000 per beneficiary as per project design," she outlined.


According to Mang’eni, the second phase of disbursement has already been scheduled and will be completed after training activities are finalized.


"The disbursement of the 2nd tranche of the business start-up capital is earmarked to take place before the end of April 2026, after the completion of the 2nd business skills classroom training, paving the way for the 2nd mentorship period that will introduce the beneficiaries to the MSME ecosystem for enhanced business support," she added.


The government says the phased approach is meant to ensure young entrepreneurs not only receive funding but also gain practical skills and structured support to sustain their businesses.

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