The government has issued a firm warning to beneficiaries of the National Youth Opportunities Towards Advancement (NYOTA) Project, cautioning them against diverting the funds to non-business activities and clarifying how existing loans and overdrafts relate to the disbursement.
Speaking on Thursday, January 8, Cabinet Secretary for Cooperatives and MSMEs Wycliffe Oparanya explained that popular mobile overdraft facilities cannot automatically deduct NYOTA funds because the government releases the money through a dedicated mobile application, not through beneficiaries’ regular mobile money accounts.
Oparanya said developers designed the NYOTA mobile app specifically to ensure that beneficiaries use the funds strictly for approved business purposes.
As a result, youth with existing mobile loans or overdrafts should not expect automatic deductions from their NYOTA allocations, since the money does not pass through their usual mobile wallets.
“The issue of your loans, you will have to deal with the lender,” Oparanya said while presiding over the disbursement of the NYOTA North Rift Cluster Business Start-Up Capital in Eldoret, Uasin Gishu County.
The Cabinet Secretary also revealed that the government can monitor how beneficiaries withdraw and spend the funds through the app, adding that misuse would block access to the money.
Oparanya warned that the system will not release funds intended for business if a beneficiary attempts to divert them to betting or gambling.
“If you try to use the funds for betting, the money will not be released. It will only be released once you use it for the intended business,” he said.
The NYOTA Project is a five-year government programme funded by the World Bank and designed to empower young people by tackling unemployment, income insecurity, and low savings.
Following the latest disbursement, the government estimates that it has released about KSh250 million to more than 9,500 youths across counties in the North Rift region.
Under the programme, each beneficiary in the Rift Valley region receives KSh22,000 to support the growth of their enterprises, while the government deposits an additional KSh3,000 into savings accounts held at the National Social Security Fund (NSSF).
On Thursday, President William Ruto also announced expanded support for young people under the Recognition of Prior Learning initiative, revealing that the government has funded short certification courses of up to one month to help ease beneficiaries’ transition into formal employment.
The government says the measures aim to ensure NYOTA funds deliver real economic impact by supporting sustainable youth-led businesses and long-term financial security.
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