Nearly 9 million Kenyans who defaulted on the Hustler Fund loans will be barred from accessing the new National Youth Opportunities Towards Advancement (NYOTA) program, a government initiative launched to boost youth-led enterprises.
On Monday, Principal Secretaries were dispatched across counties to promote NYOTA, a joint financial empowerment project between the Government of Kenya and the World Bank. The initiative seeks to create 100,000 youth-led enterprises, with up to 70 young people in each of Kenya’s 1,450 wards set to receive Ksh.50,000 in grants. However, eligibility will depend on a clean loan record, locking out anyone with outstanding Hustler Fund debts.
Who will qualify for NYOTA funding?
During a sensitization forum at the Maasai National Technical Institute in Kajiado County, Irrigation PS Ephantus Kimotho emphasized that youth and people living with disabilities should take full advantage of the opportunity. He clarified that only applicants who meet the verification standards will qualify.
“They are going to go through a long process of verification, which will start by applying,” Kimotho said, adding, “those who have some debts with Hustler Fund may not qualify.”
In Migori County, Social Protection PS Joseph Montari echoed the same message, noting that those who defaulted on previous loans have proven they cannot be trusted with public funds.
“You were not able to repay because you went away with money. Please clear your Hustler Fund, you have to be in good standing,” Montari said.
Why are Hustler Fund defaulters excluded?
The exclusion aims to promote accountability and financial discipline after the Hustler Fund, introduced in 2022 under President William Ruto’s administration, faced major repayment challenges. According to PS Susan Mang’eni from the State Department of Micro, Small, and Medium Enterprises Development, loan defaults have reached Ksh.5 billion. She added that borrowers who have deliberately ignored repayment will also be denied access to future government-backed credit facilities, including Social Health Authority (SHA) Lipa Pole Pole.
The government’s message is clear: financial empowerment through NYOTA will prioritize responsible borrowers who have demonstrated accountability and commitment to repayment.
By Yockshard Enyendi