Young entrepreneurs under the National Youth Opportunities Towards Advancement (NYOTA) programme are set to enjoy a two-year waiver on business permit fees after President William Ruto directed county governments to implement the measure.
Speaking on Friday during the release of the second tranche of NYOTA funding at the Ulinzi Sports Complex in Nairobi, the President said the waiver is intended to ease the financial burden on young people starting businesses with support from the programme.
Ruto directed the Intergovernmental Budget and Economic Council (IBEC), working together with county governments, to put in place the permit waiver to give beneficiaries time to establish their businesses before taking on licensing costs.
“I therefore direct the Inter-Government Budget and Economic Council to work with county governments in developing and implementing a two-year business permit waiver for all NYOTA beneficiaries,” the president added.
The president added that the young entrepreneurs had proven what they can do even when provided with modest funds and it was time for the government to take away any barriers that may hinder them.
“The government of Kenya has a duty at this moment after seeing what these young entrepreneurs have done even with modest help. The success should never be restricted by unnecessary paperwork,” he added.
According to Ruto, relieving new businesses from permit costs during their early years will allow them to stabilise and grow before taking on the full cost of regulatory compliance.
“Young businesses deserve the opportunity to find their feet before they bear the full cost of compliance,” he added.
The President also directed the Ministry of Cooperatives and Micro, Small and Medium Enterprises (MSME) Development to establish a national identification system for all NYOTA beneficiaries.
The unique NYOTA identification mechanism will allow beneficiaries to access government services, incentives and other business support programmes more easily.
“I further direct the Ministry of Cooperatives and MSMEs Development to establish a national NYOTA identification mechanism so that every beneficiary can seamlessly access government services, incentives and opportunities designed to support enterprise growth,” Ruto said.
In another move aimed at supporting youth-owned enterprises, the President instructed government financial institutions to develop a dedicated financing product for NYOTA beneficiaries seeking to expand their businesses after exhausting the initial grant.
The institutions include the Youth Enterprise Development Fund, Uwezo Fund, Women Enterprise Fund, Kenya Industrial Estates and other government agencies that support small businesses.
“I also direct government finance institutions, including the Youth Enterprise Development Fund, the Uwezo Fund, the Women Enterprise Fund, Kenya Industrial Estates and other relevant agencies to establish a dedicated NYOTA growth product. The first grant must never become the last opportunity,” he said.
The directives come as beneficiaries begin receiving the second Ksh25,000 instalment under the NYOTA programme, which is designed to help young entrepreneurs start and grow businesses.
The latest measures are expected to reduce operating costs for beneficiaries while making it easier for them to access government support and additional financing as their businesses expand.
