President William Ruto on Thursday strongly defended the Nyota Fund programme, dismissing claims that it is a scam or a political inducement and describing it as a structured intervention aimed at addressing youth unemployment.
Speaking at Gusii Stadium during a Nyota Fund disbursement ceremony, Ruto said the programme was deliberately designed to empower young people through access to affordable financing, business skills training and opportunities to participate meaningfully in the economy.
“The Nyota Fund is not a scam. It is a well-thought-out intervention meant to help our youth start business enterprises. It is a practical demonstration of the Bottom-Up Economic Model at work,” Ruto said.
The President announced that by Thursday night, the fund would be opened to accommodate more than 94,000 additional beneficiaries, with thousands more expected to be enrolled in subsequent phases.
At least 1,300 young people from Nyamira, Kisii and Migori counties benefited from the disbursement exercise.
“We have not come here to give handouts. If this were a handout scheme, we would not have taken beneficiaries through training,” Ruto said.
He urged young people to take advantage of diaspora job opportunities by applying through the National Employment Authority website, adding that the government remains committed to job creation and enterprise development, particularly at the grassroots.
According to the President, the Nyota Fund is expected to benefit more than 800,000 young people nationwide. He announced plans to preside over similar disbursement exercises in Kisumu and Kilifi counties in the coming weeks.
“Our goal is to ensure that young people have the resources and support they need to start businesses, grow ideas and create jobs for themselves and others,” he said.
Deputy President Kithure Kindiki said youth empowerment programmes such as Nyota were critical in steering young people away from crime, hooliganism and political violence.
Prof Kindiki noted that unemployment and idleness had pushed many young people into antisocial behaviour.
“When youth are economically empowered, they cannot be easily used to cause chaos,” he said, urging beneficiaries to fully utilize the programme.
Youth unemployment remains one of Kenya’s most pressing socio-economic challenges, with thousands entering the job market annually amid limited formal employment opportunities.
Ruto and Kindiki said the Nyota Fund forms part of a broader government strategy to promote entrepreneurship, innovation and self-employment.
“Every year, the country adds a large number of youth—educated and uneducated—into the population. Only through such interventions can we give them hope,” Ruto said.
He added that the Bottom-Up Economic Model was no longer a political slogan but a plan being implemented through tangible programmes.
Beneficiaries of the fund must undergo a mandatory four-day business skills training programme before disbursement. The training focuses on financial management, entrepreneurship and business sustainability.
Under the first phase, each beneficiary receives Sh25,000, with Sh22,000 credited to a Pochi la Biashara account and Sh3,000 deposited into a Haba na Haba savings account managed by the National Social Security Fund (NSSF). A second phase will provide an additional Sh25,000, bringing total start-up capital to Sh50,000 per beneficiary.
Kisii Governor Simba Arati and Nyamira Governor Amos Nyaribo announced tax reprieves of one year and five years respectively for Nyota beneficiaries in their counties.
Governor Arati also appealed to the President to fast-track funding for the upgrade of Gusii Stadium. He said ODM would work with UDA ahead of future elections and accused former Deputy President Rigathi Gachagua of using state machinery to intimidate him before his impeachment.
Education Cabinet Secretary Julius Ogamba warned school principals against sending students home over lack of uniform, saying those who defy the directive risk dismissal. He also criticized individuals who belittle the Sh50,000 grants, saying they were disconnected from the realities faced by ordinary Kenyans.
Principal Secretary Susan Mang’eni cautioned applicants against fake application links and advised them to seek assistance from chiefs. She urged beneficiaries to use the funds strictly for their intended purpose.
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