At least 9 million Kenyans who defaulted on Hustler Fund loans have been blacklisted from accessing the government’s newly launched National Youth Opportunities Towards Advancement (NYOTA) program.
The NYOTA Fund, a partnership between the Government of Kenya and the World Bank, seeks to empower young entrepreneurs across the country by providing KSh 50,000 grants to eligible youth-led ventures.
According to officials, the program targets the creation of 100,000 youth-owned enterprises, with up to 70 young people per ward in all 1,450 wards nationwide expected to benefit.
However, individuals who defaulted on Hustler Fund loans have been disqualified from participating in the initiative. The decision, authorities say, is aimed at promoting financial responsibility and ensuring that beneficiaries are committed to repaying future government-backed support programs.
“The NYOTA Fund is meant to reward discipline and integrity in youth entrepreneurship. Those who failed to honor their Hustler Fund obligations will not be eligible,” a senior government official explained.
The Hustler Fund, launched in December 2022, was a flagship project under President William Ruto’s administration to offer affordable credit to low-income earners and small businesses. However, it has faced challenges with high default rates, prompting the state to tighten eligibility in subsequent programs.
The World Bank-backed NYOTA Fund is part of Kenya’s broader youth empowerment framework, aimed at reducing unemployment and promoting self-reliance among the youth.
