Over 9 Million Hustler Fund Defaulters Barred from NYOTA Youth Grants
More than 9 million Kenyans who defaulted on their Hustler Fund loans will not be eligible for the newly launched National Youth Opportunities Towards Advancement (NYOTA) funds, the government has announced.
The revelation comes as Principal Secretaries (PSs) from various ministries were dispatched across the country to mobilize support for NYOTA, a World Bank-backed financial empowerment initiative aimed at creating 100,000 youth-led enterprises.
Under the NYOTA program, 70 young people from each of Kenya’s 1,450 wards will receive grants of Ksh. 50,000 to help kickstart business ventures and promote self-reliance. However, the government clarified that youths who defaulted on Hustler Fund loans will automatically be disqualified.
During a grassroots sensitization meeting at Maasai National Technical Institute in Kajiado County, Irrigation PS Ephantus Kimotho urged the youth and persons with disabilities to take advantage of the opportunity.
“They are going to go through a long process of verification which will start by applying,” said Kimotho. “Those who have debts with the Hustler Fund may not qualify.”
The PS added that, after the verification process, only 70 youth per ward will be selected from the 25 wards in Kajiado to receive funding under the NYOTA initiative.
Similarly, Social Protection PS Joseph Montari, while addressing residents in Migori County, echoed the same sentiments, warning that Hustler Fund defaulters have proven untrustworthy with public money.
“You were not able to repay because you went away with the money. Please clear your Hustler Fund loan; you have to be in good standing,” Montari told residents.
According to officials, in the first phase of implementation, 24,000 youths in Kajiado applied, but only 318 successfully completed the required verification and testing process.
The Hustler Fund, launched shortly after President William Ruto took office in 2022, was intended to provide affordable credit to low-income Kenyans and small-scale traders. However, repayment challenges have plagued the program.
On September 12, State Department of Micro, Small and Medium Enterprises Development PS Susan Mang’eni revealed that loan defaults have reached Ksh. 5 billion, largely due to borrowers who deliberately refused to repay.
“Those who have purposefully refused to pay the loan acquired three years ago will not have access to other government credit facilities such as the Social Health Authority (SHA) Lipa Pole Pole,” PS Mang’eni stated.
The exclusion of defaulters from NYOTA underscores the government’s push for financial accountability as it seeks to build a sustainable framework for youth empowerment and entrepreneurship.