Nairobi — President William Ruto’s flagship youth empowerment programme, the National Youth Opportunities Towards Advancement (NYOTA) project, is on the brink of collapse due to a critical budget deficit of Sh7.6 billion.

The shortfall threatens to derail the government’s bold promise to empower over 800,000 young Kenyans with capital and job opportunities.

The Sh30 billion five-year initiative is co-funded by the Government of Kenya and the World Bank through a USD 229 million concessional credit.

It aims to unlock employment and entrepreneurship prospects for the youth, a demographic still grappling with alarmingly high unemployment rates.

Appearing before the National Assembly’s Committee on Trade and Cooperatives, Principal Secretary for Micro, Small and Medium Enterprises (MSME) Development, Susan Mangeni, warned that unless the Treasury urgently allocates the Sh7.6 billion shortfall, Kenya risks triggering a World Bank pullout and losing the confidence of more than one million young applicants.

“The concern is that the World Bank conducts a mid-term review of disbursed funds. If the money is not utilised, it may be redirected to other global priorities. This would crush the dreams of young Kenyans who have been banking on NYOTA,” PS Mangeni told the committee.

She disclosed that only Sh1.2 billion was allocated to the project in the current financial year, with Sh200 million earmarked for operations — leaving a huge funding gap that could stall disbursements to the first and second cohorts, each scheduled to receive Sh50,000 in startup capital.

Unfunded applicants

The NYOTA programme was slated to begin disbursements in August, starting with 54,000 shortlisted youth.

Lawmakers however questioned the rationale behind soliciting applications without securing adequate resources.

Gichugu MP Gichimu Githinji criticised what he termed a disconnect between government planning and implementation, warning that such missteps could erode public trust in state programmes.

“Even if the funding is provided for and donor money hasn’t been released, why would we advertise the programme and raise expectations when we aren’t ready to deliver?” he posed.

Committee members noted mounting frustration among youth across the country, many of whom responded eagerly to the government’s call, only to be met with silence or delay.

Vihiga Woman Representative Beatrice Adagala illustrated the psychological toll on applicants over the uncertainty.

“It’s like telling children to wash their hands because lunch is ready. They wash, sit at the table for four or five hours — but no food comes. What do you expect? That’s exactly the mood among our youth. They’re asking: why did we even apply?”

WB funding absorption

Citing past failures like the Kenya Youth Employment Opportunities Project (KYEOP), PS Mangeni warned that further delays risk alienating the youth and undermining the programme’s credibility.

“We trained young people, then left them waiting for years. Eventually, we had to return the unspent funds to the World Bank,” she recalled.

Mangeni added that the demand for NYOTA is unprecedented and has overwhelmed ministry systems.

“Our mailboxes are flooded. That’s why we’re appealing for the committee’s fiscal support — to avoid repeating the mistakes of KYEOP,” she said.

Lawmakers urged the ministry to explore constitutional avenues, such as Article 223, which allows for emergency expenditure, to fast-track the funding ahead of the next supplementary budget cycle expected around October or November.

“Can the Gen Z generation wait until Supplementary 1? My gut tells me no,” said Mathare MP Anthony Oluoch. “The only viable option is to invoke Article 223 — which can be facilitated through Cabinet policy intervention.”

He warned that failure to meet expectations could spark public outrage, urging the ministry to make an urgent and compelling appeal to Cabinet.

“You may have stoked public hopes to a level you can’t control — raising expectations we are not ready to fulfill,” Oluoch cautioned.

4-phased plan

The NYOTA programme is structured into four components with the first component valued at USD 82 million focusing on labour market interventions, including apprenticeships, job placements, and formal certification for youth with informal technical skills.

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