The Kenyan government spent over Sh1 billion on administration and consultancy services for the World Bank funded National Youth Opportunities Towards Advancement (Nyota) project in its first year. New disclosures reveal that none of the money went directly to youth beneficiaries during the initial phase.
The Micro and Small Enterprises Authority (MSEA) released the figures in its annual report for the year ending June 2025. The report comes amid growing popularity of the Nyota project, which aims to provide funding, business training, and market access for young Kenyans. The government launched the project to support youth entrepreneurship under the leadership of President William Ruto, who has been actively involved in public events distributing cash to beneficiaries. The first year, however, was dominated by administrative spending.
Funding and Spending Details
MSEA reported receiving Sh1.032 billion from the World Bank in the 2024/25 fiscal year. According to the authority, the entire amount was absorbed by “administrative activities and consultancy services.” Of this, 84.4 percent of the funds went to consultancies and office operations. The spending included purchasing computers, laptops, and other office infrastructure needed to manage the project.
Despite this investment, the Auditor General noted that actual project activities had not yet begun by the end of June 2025. This means that more than a year after the project officially started, no loans or business training had reached young Kenyans.
Project Scope and Funding Structure
Nyota is a Sh33 billion project. The World Bank provides 90 percent of the funding, while the Kenyan government contributes the remaining 10 percent. Out of the Sh29.5 billion provided by the World Bank, Sh25.8 billion is a loan that the government will need to repay with interest. The project aims to improve the economic standards of 800,000 young Kenyans aged 18 to 29. It targets unemployed and underemployed youth, offering them start-up loans ranging from Sh20,000 to Sh50,000 and up to Sh200,000.
In addition to funding, Nyota is meant to provide entrepreneurial skills training, link youth with financing opportunities, and help them access markets. The project is described by MSEA as a way to “unlock the economic potential of youth across Kenya by enhancing employability, entrepreneurship, and self-reliance, especially among vulnerable and underserved groups.”
High Demand from Youth
Despite the delay in project rollout, the response from youth has been overwhelming. Over one million young Kenyans applied to benefit from the first phase. The first phase, however, targeted only 20,000 beneficiaries. The number of applicants is 50 times higher than the planned allocation, highlighting the scale of unemployment and economic hardship among youth in Kenya.
The applicants represent roughly one in every five Kenyans, showing that youth are eager for financial support and business opportunities. MSEA implemented eligibility screening to manage the high demand. This included aptitude tests and verification processes to ensure that applicants met the project’s criteria.
Administrative Challenges
The first year spending on administrative costs raises questions about efficiency and project readiness. Critics argue that the Sh1 billion spent on consultancies and office operations could have been directed toward actual youth support. Government officials defend the expenditure, noting that robust administrative systems are essential for large scale projects. They say the initial investment ensures accountability, proper monitoring, and long term sustainability of the program. MSEA emphasized that funds spent on consultancies and office setup were meant to build structures capable of managing hundreds of thousands of youth beneficiaries efficiently.
World Bank Oversight
The World Bank has closely monitored the project. The institution released a total of Sh1.223 billion to the government for Nyota in the year ending June 2025. This includes the Sh1.032 billion channeled through MSEA. The World Bank’s involvement ensures that the project adheres to international standards of financial management and accountability. Loan repayments and proper fund allocation are central to its oversight.
The project comes at a time when Kenya faces persistent youth unemployment. Millions of young Kenyans are out of work and struggling to make ends meet. Nyota aims to address this by combining financial support with skills development. By offering start up loans and business training, the program intends to create new enterprises and boost youth led economic activity. The high number of applications indicates that youth see the project as a vital opportunity. Many view Nyota as a lifeline to achieve financial independence.
Government Vision
President Ruto has emphasized youth empowerment as a cornerstone of his administration. Public disbursement exercises have generated enthusiasm and hope among young Kenyans. The government argues that establishing a strong administrative framework in the first year will allow smooth rollout in subsequent phases. Officials say proper management reduces the risk of misallocation or misuse of funds.
Despite the positive intentions, the project faces challenges. The first year focus on administration rather than direct support has drawn criticism. Some stakeholders worry that bureaucratic processes could delay meaningful youth impact. Additionally, repayment obligations to the World Bank add financial pressure. Sh25.8 billion of the loan will need repayment with interest, which places responsibility on the government to ensure the project succeeds. Monitoring, transparency, and timely implementation will determine whether the project achieves its goals.
The Nyota project has the potential to transform the economic prospects of hundreds of thousands of Kenyan youth. It combines financing, training, and market access into a single framework. The government plans to expand direct support as administrative systems mature. Future phases are expected to reach tens of thousands of young entrepreneurs, providing loans and training. If successful, Nyota could contribute to poverty reduction, employment creation, and business growth among youth. It could also serve as a model for similar programs across Africa.
The Future of Nyota
The first year of the Nyota project focused heavily on administration, absorbing over Sh1 billion in consultancies and office expenses. While no direct benefits reached youth initially, the groundwork laid could enable efficient rollout in future phases. With over one million applicants and strong demand for financial support, the project demonstrates the urgent need for youth economic empowerment in Kenya. Proper implementation will determine whether Nyota becomes a transformative program or remains another government initiative with high administrative costs but limited impact. The success of Nyota depends on accountability, transparency, and timely disbursement. If managed well, it could unlock the economic potential of Kenya’s youth and provide a platform for long-term growth and entrepreneurship.
