Govt Announces Date for Second Phase of NYOTA Fund Disbursement

The government has announced that beneficiaries of the National Youth Opportunities Towards Advancement (NYOTA) Project will receive the second tranche of business start-up grants by June 30, 2026.

In a statement issued on Tuesday, June 2, 2026, Principal Secretary for Micro, Small and Medium Enterprises (MSMEs) Development, Susan Mang’eni, said the funds will be disbursed simultaneously to all beneficiaries across the country.

The announcement comes amid growing inquiries from beneficiaries over delays in the release of the second tranche of funding.

“We wish to announce that the disbursement for the second tranche of business support start-up capital will happen by June 30, 2026, and all the beneficiaries will receive the grants at the same time, unlike the first tranche disbursement, which was phased out in clusters,” the PS said.

Why the Funds Were Delayed

Mang’eni said the delay in releasing the second tranche of funds was caused by budget adjustments.

She explained that the Business Support Component was initially planned to be rolled out in three phases.

However, after receiving an overwhelming number of applications, the government and the World Bank decided to conduct a single nationwide intake instead of several phases.

According to the ministry, the move allowed more young people to benefit from the programme but increased the amount of money needed within one financial year, leading to delays in disbursing the funds.

“We are grateful to the National Treasury for actively working to resolve the fiscal space constraints and the flexibility to accommodate the budgetary adjustments,” Mang’eni stated.

She also warned beneficiaries and the public against misinformation and fraudsters, urging them to rely only on official government communication channels for updates about the programme.

At the same time, MSMEs PS announced that beneficiaries who took part in the first phase of the NYOTA program will receive the remaining balance of Ksh 25,000 each to help them expand and sustain their businesses.

Also Read: Govt Clarifies When NYOTA Beneficiaries Will Get Second Start-up Capital Payment

About the NYOTA Project

The NYOTA Project is a partnership between the government and the World Bank aimed at helping vulnerable and disadvantaged youth access employment and business opportunities.

The five-year programme, which began in March 2025, offers skills training, mentorship, apprenticeship opportunities, business support, and start-up grants to young entrepreneurs.

The ministry said about two million young people applied for the programme, highlighting the strong demand for entrepreneurship support among Kenyan youth.

So far, 122,147 young people from all 1,450 wards across the country have been selected to benefit from the initiative after successfully completing the Entrepreneurial Aptitude Test (EAT).

Also Read: Government Clarifies NYOTA Notice on Ksh 25,000 Payouts

The beneficiaries received business training and mentorship before accessing the first start-up grant of Ksh 25,000. Out of the amount, Ksh 3,000 was set aside as savings under the NSSF Haba Haba Scheme.

According to the government, more than 99 per cent of the beneficiaries who received the first grant have already started businesses.

The project has also engaged 46 business development firms, more than 3,600 trainers and over 5,500 mentors to support the young entrepreneurs.

Follow our WhatsApp channel for instant news updates

Cooperatives & MSMEs Development leadership give press statement on status of NYOTA project. PHOTO/ Ministry of Cooperative.