Auditor Sounds Alarm as Nyota Youth Programme Delivers Zero Loans After One Year
The Kenyan government spent its entire Sh1.032 billion first-year allocation for the Nyota youth empowerment programme on administration and consultancy costs, leaving no money for start-up loans or training, despite more than one million young people applying to benefit, a new official report has revealed.
According to the Micro and Small Enterprises Authority (MSEA) annual report for the 2024/25 financial year, all funds allocated to Nyota were absorbed by office operations, consultancy services, and equipment purchases, including computers and laptops.
The authority confirmed that no substantive programme activities—including business training, mentorship, or financial support—were rolled out during the year under review.
“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,” MSEA stated in the report.
Further documentation shows that consultancies and office operations alone consumed 84.4 per cent of the World Bank funding disbursed to Nyota during the period.
Auditor raises red flag over delays
Concerns were further amplified by the Auditor General, who revealed that by June 2025—more than a year after the project officially commenced—no substantive project activities had been implemented.
Nyota, formally known as the National Youth Opportunities Towards Advancement project, is a Sh33 billion initiative, with 90 per cent of the funding provided by the World Bank and the remaining 10 per cent contributed by the Kenyan government.
Of the Sh29.5 billion World Bank contribution, Sh25.8 billion is a repayable loan, meaning taxpayers will shoulder the cost with interest.
Youth promised loans and training
The programme targets Kenyans aged between 18 and 29, promising start-up loans of Sh20,000, Sh50,000 or Sh200,000, alongside entrepreneurial training, mentorship, and access to markets and financing opportunities.
MSEA said the initiative was designed to address youth unemployment and economic exclusion.
“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,” the authority said.
Over one million applications signal deep economic strain
The report highlights unprecedented demand for the programme, with more than one million youths applying in the first phase alone—50 times higher than the initial target of 20,000 beneficiaries.
MSEA said it carried out eligibility screening, including aptitude tests, to identify candidates for business development training, mentorship, and start-up capital support, though no disbursements were ultimately made during the year.
The revelations come at a time when President William Ruto has publicly championed Nyota, including leading high-profile events to distribute cash to beneficiaries, as the project seeks to position itself as a flagship youth empowerment initiative.
Nyota is expected to benefit 800,000 young people by December 2028, building on lessons from the Kenya Youth Employment and Opportunities Project (KYEOP), which concluded in 2024.
Under the wider programme, around 600,000 youths are also expected to receive digital training, including access to government procurement opportunities (AGPO) and other socio-economic initiatives.
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Auditor Sounds Alarm as Nyota Youth Programme Delivers Zero Loans After One Year