Govt to disburse Ksh1.25B Nyota Fund to youth in 27 counties

The National government is set to disburse Ksh1.25 billion to youth beneficiaries under the Nyota Fund, a key component of its economic empowerment agenda aimed at addressing youth unemployment.

The rollout, which is scheduled to take place between January 8 and January 16, follows the successful completion of mandatory three-day business skills training by beneficiaries in several counties.

The beneficiaries are from 27 counties, including Uasin Gishu, Elgeyo Marakwet, Nandi, Trans-Nzoia, Turkana, West Pokot, Nakuru, Narok, Bomet, Kericho, Baringo, Laikipia, Isiolo, Samburu, Nyeri, Murang’a, Kirinyaga, Nyandarua, Meru, Tharaka Nithi, Embu, Machakos, Kitui, Makueni, Nairobi, Kiambu, and Kajiado.

Principal Secretary of the State Department for Micro, Small, and Medium Enterprises (MSMEs) Development Susan Mang’eni, confirmed the disbursement of the funds and highlighted that the initiative is in its second phase.

The funds will be disbursed through regional mentorship and disbursement events presided over by President William Ruto.

“This is not just about financing. Beyond the grants, beneficiaries will undergo a two-month mentorship program delivered by business development experts and local entrepreneurs. This will ensure that the funds are used effectively and will help guide their entry into local business ecosystems,”Mang’eni said in a statement.

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In addition to the financial support, beneficiaries will also receive business development training to prepare them for subsequent funding phases. Each successful beneficiary will receive Ksh22,000 deposited into their Nyota Pochi la Biashara wallet, as well as Ksh3,000 saved under the Haba na Haba account, managed by the National Social Security Fund (NSSF).

The Nyota Fund is part of a broader five-year project financed by the World Bank, which aims to empower over 100,000 young people across the country’s 1,450 wards. The initiative primarily targets youth aged between 18 and 29 years, with a special focus on persons with disabilities, and those with secondary-level education or lower who are either underemployed or face systemic barriers to employment opportunities.

The second phase of the Nyota Fund follows the first disbursement made in November 2025, when over 12,000 youth in the Western Kenya cluster spanning Kakamega, Vihiga, Busia, and Bungoma counties received Ksh25,000 each, totaling Ksh303.8 million in funding.

The government also plans to announce the third phase of the initiative soon, which will cover 16 counties, including Kilifi, Lamu, Tana River, Mombasa, Kwale, Taita Taveta, Kisumu, Siaya, Homa Bay, Migori, Nyamira, Kisii, Marsabit, Garissa, Mandera, and Wajir.

Unveiled in August 2025, the Ksh5 billion Nyota Fund aims to not only provide financial grants but also offer youth critical skills training, job experience, and access to government procurement opportunities. As part of this broader effort, 90,000 youth are expected to gain job experience, 20,000 will receive recognition of prior learning, and another 600,000 will be trained in Access to Government Procurement Opportunities (AGPO).

By Obegi Malack