Thousands of young entrepreneurs enrolled in the National Youth Opportunities Towards Advancement (NYOTA) programme are set to receive a boost after the government began processing the KSh3,000 savings component attached to the project’s startup grants.
The Ministry of Cooperatives and MSMEs Development announced on Tuesday that eligible beneficiaries will soon start receiving notifications confirming that the savings funds have been allocated to their accounts under the NSSF Haba Haba Savings initiative.
The allocation targets youths who have already received the first phase of NYOTA business support funding and are properly registered within the programme.
Under the project, beneficiaries receive a total business startup grant of KSh50,000, which is released in two phases of KSh25,000 each to help young people start or expand businesses without taking on debt.
For every KSh25,000 tranche, KSh22,000 is deposited into the beneficiary’s NYOTA wallet for business activities, while KSh3,000 is set aside as savings.
According to the ministry, the savings component is now being processed for eligible beneficiaries, beginning with 66,605 youths across the country.
Part of the savings will be invested while the rest will be preserved for future use. Of the KSh3,000, KSh900 will be channelled into a Money Market Fund (MMF), while KSh2,100 will be placed in a locked savings account.
“The KSh3,000 savings component is currently being processed for all eligible beneficiaries, starting with 66,605 youths,” the ministry said in a statement.
Officials explained that only beneficiaries who successfully received the first tranche of business support and completed registration using their official phone numbers qualify for the savings allocation.
The funds will not be immediately accessible, as the government says the savings are intended to encourage a culture of long-term financial planning among young entrepreneurs.
Beneficiaries will be allowed to access the money after approximately one year.
The latest announcement is expected to bring relief and encouragement to many young people who joined the programme with hopes of building sustainable businesses and improving their livelihoods.
The government completed the first round of KSh25,000 disbursements earlier this year, benefiting more than 101,000 youth-led businesses across the country.
Attention is now shifting to the second tranche of funding, which is expected to start reaching beneficiaries from June 30 after participants complete the required Business Development Support (BDS) training.
The ministry has advised beneficiaries to keep checking official NYOTA communication channels and their phones for updates regarding the savings allocation and upcoming disbursements.