Government flags fraudulent updates on youth business funding scheme

The government issued a warning regarding fraudulent online notices targeted at beneficiaries of the National Youth Opportunities Towards Advancement (NYOTA) project. Unverified reports have been circulating online regarding the release of the second phase of funding, prompting official intervention to clarify the administrative process.

Principal Secretary for the State Department for Micro, Small and Medium Enterprises (MSMEs) Development, Susan Mang'eni, issued an official statement addressing the matter, following numerous inquiries from the public and registered youth. The unauthorized notices purported to provide instructions on the subsequent phases of the business support programme.

Ministry officials confirmed that internal systems are finalizing the administrative arrangements required for the nationwide deployment of the second tranche of capital. A formal press briefing is scheduled for Tuesday, 2nd June 2026, to outline the official schedule and requirements.

The initiative provides capital injections to eligible small scale businesses managed by young citizens, with oversight managed across all Kenyan administrative wards. Under the established framework, selected youth qualify for total funding of 50,000 shillings, structured in distinct deployment phases linked to training completion.

The first phase of the World Bank-backed project delivered initial tranches to more than 100,000 youth, consisting of direct mobile wallet transfers and mandatory deposits into the National Social Security Fund (NSSF) savings accounts. Official tracking indicates that nearly all initial recipients successfully established active commercial enterprises.

Advancement to the final funding round requires beneficiaries to complete mandatory classroom based business training and structured mentorship sessions, which were conducted across constituencies to address operational skill gaps. The ministry urged youth to verify all communications through official government channels to avoid fraudulent traps.