Govt plans to rollout multi-billion youth empowerment program hit by budget hitch

The government's Sh20 billion project to empower youths has been hit by budgetary constraints.

The ambitious National Youth Opportunity Towards Advancement was to empower the youth through skills training, business support and job creation.

The programme is being rolled out in partnership with the World Bank.

It targets more than 800,000 youth aged 18–29, and up to 35 for those with disability.

“As part of our financial empowerment programme for those at the base of the economy, Nyota will enhance employability through training, work experience, recognition of prior learning, entrepreneurship and a savings culture,” said President William Ruto during this year’s Madaraka Day celebrations.

Under the project, at least 70 youth per ward were set benefit from grants, business training and market access.

By August this year, 100,000 youth were to each receive Sh50,000 in seed capital.

However, the programme now risks not taking off over a Sh7.6 billion budget deficit to match the World Bank’s $229 million (Sh29.5 billion) concessional credit.

Micro, Small and Medium Enterprises Principal Secretary Susan Mangeni on Thursday told a Parliamentary Committee that World Bank may pull out if the government does not provide the money.

She spoke during a session with the National Assembly’s Trade and Cooperatives Committee chaired by Ikolomani MP Bernard Shinali.

The PS was appraising the committee on the status of the project, which is part of Ruto's legacy on youth empowerment.

 “The concern is that the World Bank conducts a mid-term review of disbursed funds. If the money is not utilised, it may be redirected to other global priorities. This would crush dreams of young Kenyans who have been banking on NYOTA,” Mangeni said.

The programme was only allocated Sh1.2 billion in the current financial year.

Out of the allocation, Sh200 million is ring-fenced for operations leaving the rest for the rollout.

MPs however questioned the logic of identifying beneficiaries before securing the budget, warning that the move may disenfranchise further the fragile youth population.

Gichugu MP Gichimu Githinji said the announcement may trigger public mistrust.

 “Even if the funding is provided for and donor money has not been released, why would we advertise the programme and raise expectations when we aren’t ready to deliver?” he asked

Mathare MP Anthony Oluoch termed the project a good platform to engage the youths in the wake of Gen Z protests.

“This is one of the biggest projects that can avoid much, but it may also ignite the anger of Gen Z and we may not be able to control the situation,” he said.

The lawmakers also demanded public disclosure of all the listed beneficiaries.

Shinali said beneficiaries should know their fate even as the programme awaits budgetary top-up.

“You said that theSh1.2 billion available may not be enough, tell us the shortfall and when it is required. This is a nationwide programme and the number of youths who apply is huge. If you love our youth, from those you know are successful, could you publish their names so that they can know if they can still bank their hopes on this project,” he said.

INSTANT ANALYSIS

National Youth Opportunity Towards Advancement (NYOTA) is an initiative aimed at empowering young Kenyans through skills training, business support, and job creation. NYOTA is anchored on the Hustler Fund platform and has attracted over 1 million business support applicants.