Hustler Fund Defaulters Locked Out of New NYOTA Youth Grants

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Hustler Fund Defaulters Locked Out of New NYOTA Youth Grants

At least 9 million Kenyans who defaulted on Hustler Fund loans will be locked out of the government’s new National Youth Opportunities Towards Advancement (NYOTA) programme.

The government says the programme, launched in partnership with the World Bank, will provide young people with grants and business support to create jobs and entrepreneurship. But officials say only applicants with a clean record in government-funded programmes will qualify.

On Monday, Principal Secretaries (PSs) from various ministries were deployed to promote the NYOTA programme, which aims to establish 100,000 youth-led enterprises.

Under the plan, 70 youth in each of Kenya’s 1,450 wards will receive Ksh50,000 grants to either start or expand small businesses.

At the Maasai National Technical Institute in Kajiado County, Irrigation PS Ephantus Kimotho said the verification process will be thorough and those with unpaid Hustler Fund loans will be automatically disqualified.

“They will go through a long process of verification, which will start by applying,” Kimotho said. “Those who have debts with Hustler Fund may not qualify.”

Social Protection PS Joseph Motari issued a stern warning in Migori County. He said those who defaulted on the Hustler Fund had shown they can’t be trusted with public funds.

“You were not able to repay because you went away with money. Please clear your Hustler Fund; you have to be in good standing,” Motari said.

The Hustler Fund, launched in 2022 after President William Ruto took office, was meant to provide affordable loans to small-scale traders and low-income earners. But the scheme has faced repayment challenges with billions of shillings still outstanding.

On September 12, PS for Micro, Small and Medium Enterprises Development Susan Mang’eni said defaulters owe the government Ksh5 billion. She warned that continued non-payment will also lock out others from state-backed financial schemes including the Social Health Authority’s “Lipa Pole Pole” programme.

The launch of NYOTA is the government’s latest move to revamp its youth empowerment agenda, focusing on financial discipline, accountability and sustainable entrepreneurship.It’s a do-over for responsible youth.

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Hustler Fund Defaulters Locked Out of New NYOTA Youth Grants