Principal Secretary for Micro, Small and Medium Enterprises (MSME) Development Susan Mang'eni has explained why some beneficiaries of the National Youth Opportunities Towards Advancement (NYOTA) Programme received Sh19,000 instead of the expected Sh22,000 in the latest round of disbursements.
Speaking during an interview on NTV on Saturday, Mang'eni said the reduced amount was a result of beneficiaries withdrawing their mandatory savings before completing the programme, making them ineligible for some of its financial incentives.
Her remarks come after several NYOTA beneficiaries questioned why they had received less money than expected during the programme's second phase of funding.
"The reason why some of them received Sh19,000 instead of Sh22,000 is because they withdrew all their savings and the project is not yet completed," Mang'eni explained.
She said the NYOTA Programme is structured to encourage young entrepreneurs to save while building sustainable businesses. Under the initiative, part of the funds disbursed to participants is automatically set aside in savings accounts.
According to the Principal Secretary, the savings are divided into short-term and long-term accounts to instil financial discipline among beneficiaries.
"The project seeks to cultivate a saving culture among our young people," she said.
Mang'eni noted that participants who maintain their savings until the programme ends become eligible for an additional matching grant provided through a partnership with the National Social Security Fund's (NSSF) Haba Haba savings platform.
"The project has provided a matching grant. If you save, after the end of the project, you also receive a matching grant with a ratio of two to one," she explained.
She cautioned that beneficiaries who withdraw their savings prematurely forfeit the opportunity to access the programme's full financial benefits.
"What will you do with this matching grant that is supposed to help de-risk your business if you have already withdrawn your savings?" she asked.
Mang'eni said the mandatory savings component was deliberately incorporated into the programme to help young entrepreneurs build financial resilience and cushion their businesses against unexpected challenges.
The NYOTA Programme is a five-year youth economic empowerment initiative implemented by the Government of Kenya with support from the World Bank.
It targets vulnerable and unemployed youth aged between 18 and 29 years, and up to 35 years for persons with disabilities who have a Form Four education or below.
Beyond providing startup capital, the programme also offers business skills training and structured mentorship to help participants establish or expand small enterprises.
It is built around three pillars—skills development, financing and mentorship—with the government hoping it will spur youth entrepreneurship, create jobs and strengthen the long-term sustainability of small businesses across the country.