Government has announced that the second phase of the NYOTA Business Support Fund will be disbursed after beneficiaries complete a nationwide mentorship programme, marking a significant step in its effort to empower youth entrepreneurship across the country.
Speaking on Tuesday, Principal Secretary in the State Department for Micro, Small and Medium Enterprises Development, Susan Mang’eni, confirmed that each beneficiary will receive a second tranche of Ksh25,000 upon completing the mandatory training. This will bring the total allocation per beneficiary to Ksh50,000.
“Upon completion of the mentorship program, beneficiaries will receive the second tranche of NYOTA Business Support startup capital amounting to Ksh25,000, including Ksh3,000 in savings under the Haba Haba scheme,” Mang’eni stated.
The PS noted that the mentorship programme, which began earlier this month across all 1,450 wards, is nearing completion. According to official data, over 94 per cent of beneficiaries who received the first tranche have already undergone mentorship, with an impressive 98 per cent having successfully launched their businesses.
The remaining participants have until April 8, following a government-approved extension, to complete the programme.
The mentorship phase is a core component of the NYOTA initiative, designed to equip young entrepreneurs with practical business skills, financial literacy, and management capabilities. Government officials have emphasized that this stage is mandatory before beneficiaries can proceed to the next phase.
Following the mentorship, a second round of Business Expertise Classroom Training is scheduled to begin on April 15, 2026, in all constituencies nationwide. Only after completing this training will beneficiaries qualify for the second disbursement.
The NYOTA programme, launched under the leadership of President William Ruto, targets youth-led enterprises by providing startup capital, structured mentorship, and hands-on work experience.
In its first phase, the government disbursed approximately Ksh2.5 billion to over 100,000 young people across all 47 counties. Each beneficiary initially received Ksh25,000 to kickstart or expand their businesses.
Beyond financial support, the initiative also integrates an On-the-Job Experience (OJE) programme, which places up to 90,000 youths in workplaces for practical training. Participants receive a monthly stipend of Ksh6,000 for six months, enabling them to gain industry-relevant skills while earning an income.
The programme is largely funded by the World Bank, with a total project cost estimated at Ksh25.8 billion. A portion of the funds is also directed toward long-term savings through the National Social Security Fund (NSSF) under the Haba Haba scheme.
Data from the mentorship phase indicates that 65 per cent of participants are first-time entrepreneurs, highlighting the programme’s focus on nurturing new business entrants. Additionally, gender representation remains balanced, with women accounting for 51 per cent of beneficiaries.
Sector-wise, agriculture, livestock, forestry, and fisheries dominate at 41 per cent, followed by wholesale and retail trade at 26 per cent. Other sectors include fashion, beauty, ICT, manufacturing, and hospitality.
