Thousands of young entrepreneurs enrolled in the National Youth Opportunities Towards Advancement (NYOTA) programme are set to receive the long-awaited second round of start-up funding at the end of June, ending months of uncertainty over the release of the support funds that power their small businesses.
Speaking in Nairobi on Tuesday, Principal Secretary for Micro, Small and Medium Enterprises Development Susan Mang’eni confirmed that the government will disburse the second tranche of business capital in a single nationwide payout scheduled for June 30, 2026.
“We wish to announce and also confirm that the disbursement for the second tranche of business start-up capital will happen by 30th June 2026,” she said. “All the beneficiaries will receive the grants at the same time, unlike the first disbursement, which was phased out in clusters.”
The NYOTA initiative, implemented jointly by the Government of Kenya and the World Bank, is designed to support young people from vulnerable and marginalized backgrounds through a mix of skills training, mentorship, apprenticeships, business funding, savings programmes and market access opportunities.
The programme, which runs for five years and began in March 2025, drew close to 2 million applications under its business support segment, reflecting strong demand from young people seeking capital to start or expand enterprises.
According to Mang’eni, the original rollout plan was adjusted after the overwhelming number of applicants led to a shift from phased distribution to a nationwide selection process. The change followed consultations involving President William Ruto and officials from the World Bank.
So far, 122,147 young people drawn from all 1,450 wards across the country have been picked to benefit from the programme after undergoing entrepreneurial aptitude assessments and business development training.
Most of those selected have already received the first phase of funding, which included Sh22,000 deposited into business wallets, alongside Sh3,000 set aside as savings under the Haba na Haba initiative.
Mang’eni said early results from the programme show strong uptake of entrepreneurship among beneficiaries, noting that many have already set up active ventures after the initial support.
“The outcome of the first mentorship nationwide handholding session and the second business development support classroom training show that over 99% of the beneficiaries of the startup grant had already established their businesses,” she said.
The programme has also relied on a wide support structure, engaging 46 business development firms, more than 3,600 trainers and about 5,500 mentors to guide young entrepreneurs through training and business growth.
While acknowledging growing concern among beneficiaries over delays in the second payment, the PS attributed the setback to budget constraints linked to the expanded national rollout of the programme.
“The government acknowledges the increasing inquiries and concerns from beneficiaries on the disbursement of the second tranche and regrets the delay,” she said, adding that the National Treasury is working on budget adjustments to facilitate the release of funds.
She urged beneficiaries to remain patient and to rely only on official communication channels for updates on the programme.
The NYOTA project, valued at Sh33 billion, aims to strengthen youth employment, entrepreneurship, skills development and savings culture across the country. Its business support component, allocated up to Sh5 billion, provides start-up grants, training and mentorship, with beneficiaries eligible for up to Sh50,000 in total funding released in two phases.