The government has issued a stern warning to thousands of young beneficiaries of a flagship empowerment program, stating that funds diverted for betting or gambling will be instantly blocked, and the money cannot be used to automatically pay off existing mobile loans.
The clarifications were made by Cabinet Secretary for Co-operatives and Micro, Small and Medium Enterprises (MSMEs) Development, Wycliffe Oparanya, during the disbursement of the Nyota North Rift Cluster Business Start-Up Capital in Eldoret, Uasin Gishu County.
"The issue of your loans, you will have to deal with the lender," Oparanya told the youth, emphasizing a clear separation between the empowerment funds and personal debts. He detailed that the National Youth Opportunities Towards Advancement (NYOTA) funds are disbursed through a dedicated mobile application, not directly into standard mobile money accounts like M-Pesa, making them inaccessible for automatic deductions by digital lenders.
"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," the CS added.
The dedicated app is the government's technological gatekeeper. Oparanya revealed that authorities can track how the money is withdrawn and used in real-time, ensuring strict compliance with the program's business-only mandate.
A Transformative Agenda for Youth
NYOTA is a five-year, World Bank-funded government initiative designed as a transformative agenda to tackle youth unemployment, income insecurity, and poor savings culture. Following the latest disbursement drive, approximately Ksh250 million has been channeled to over 9,500 youth across counties in the North Rift region.
Under the program in the Rift Valley, each beneficiary receives Ksh22,000 as business start-up capital. In a push to cultivate a savings culture, an additional Ksh3,000 is directly deposited into individual savings accounts at the National Social Security Fund (NSSF).
Broader Youth Empowerment Push
The NYOTA disbursement coincides with other government-led youth initiatives. President William Ruto announced on Thursday that support had been extended under a Recognition of Prior Learning (RPL) component, where certification courses of up to one month are funded to ease youth transition into formal employment.
This multi-pronged approach highlights the administration's focus on creating tangible opportunities for Kenya's burgeoning youth population, while implementing stringent measures to ensure the capital achieves its intended economic purpose.
For beneficiaries, the message is clear: the NYOTA fund is a monitored business lifeline, not a personal cash grant. Its success, the government insists, depends on its disciplined use for enterprise growth.