NYOTA phase II explained, who gets a first grant & who gets more funding

The government has launched the second phase of the National Youth Opportunities Towards Advancement (NYOTA) Programme, committing Sh3.06 billion to support 122,203 young entrepreneurs across Kenya in one of the country's biggest investments in youth enterprise.

Backed by the Government of Kenya and the World Bank, NYOTA Phase II marks a shift from helping young people start businesses to supporting existing enterprises as they expand, create jobs and contribute to local economies.

The nationwide rollout follows a successful first phase that equipped thousands of young entrepreneurs with business skills, mentorship and financial support to establish businesses.

The Sh3.06 billion will be shared between two categories of beneficiaries, each receiving support tailored to where they are in their entrepreneurial journey.

A total of 33,269 young entrepreneurs will receive their first business grants after successfully completing Business Development Services training under the programme.

For these beneficiaries, the funding is expected to help them launch new businesses or strengthen ventures that are still in their early stages.

The remaining 88,934 beneficiaries are entrepreneurs who participated in the first phase of NYOTA. They have already received entrepreneurship training, mentorship and an initial grant that enabled them to start or grow their businesses.

Rather than beginning again, this group will receive a second tranche of financing to help them expand their enterprises, increase stock, purchase equipment, improve operations and create more employment opportunities.

The distinction highlights how the programme has evolved. While the first phase focused largely on business creation, Phase II is centred on business growth, ensuring entrepreneurs continue receiving support beyond the start-up stage.

Unlike the first phase, which was implemented largely in Nairobi, Kiambu, Machakos and Kajiado counties, NYOTA Phase II will have a nationwide reach.

The rollout will begin in North Eastern Kenya before extending to Western Kenya, the Central Rift and the Coast, with Cabinet Secretaries and other senior government officials leading engagements in different regional clusters.

The government says the national expansion is intended to ensure that young people have access to the same opportunities regardless of where they live.

The expansion comes after the first phase generated overwhelming interest from young Kenyans seeking business opportunities.

According to the programme, more than 2.5 million applications were received from across the country. From these, 121,800 entrepreneurs were competitively selected from all 1,450 wards.

More than 91,253 beneficiaries completed Business Development Services training before receiving business grants, while 90,478 entrepreneurs successfully completed structured mentorship programmes.

By the end of the first mentorship cycle, 96 per cent of beneficiaries had established operating businesses, demonstrating the impact of combining financing with practical business support.