The Government of Kenya has made a strong statement of intent in its 2025/2026 national budget by setting aside Ksh105.6 billion to empower young people, promote entrepreneurship, and support small businesses across the country.
The ambitious funding plan, presented to the National Assembly on Thursday, June 12, by National Treasury Cabinet Secretary John Mbadi, highlights key investments aimed at creating job opportunities, enhancing access to affordable credit, and driving growth in the creative and entertainment sectors.
Key Allocations in the 2025/2026 Budget
CS Mbadi outlined how the Ksh105.6 billion will be distributed across various programs targeting youth empowerment, small business support, and the creative economy.
“I have proposed Ksh105.6 billion for these initiatives. This allocation includes: Ksh10 billion for the National Youth Service; Ksh3.6 billion to National Youth Opportunity Towards Advancement (NYOTA); and Ksh318 million for the Youth Enterprise Development Fund. In addition, I have proposed Ksh990 million for Film Development Services,” said Mbadi.
Here is a breakdown of the major budgetary allocations:
✅ Ksh10 billion for the National Youth Service (NYS)
This funding will be used to recruit and train young Kenyans through the NYS. The service continues to play a critical role in equipping youth with vocational skills, discipline, and opportunities for national service.
✅ Ksh3.6 billion for National Youth Opportunity Towards Advancement (NYOTA)
NYOTA is a flagship program focused on creating opportunities for young people through training, mentorship, and job placement. The program seeks to provide a structured pathway for youth to advance socially and economically.
✅ Ksh318 million for the Youth Enterprise Development Fund (YEDF)
The Youth Fund, which provides affordable loans and business development support to young entrepreneurs, will get an additional Ksh308 million, bringing the total new injection to over Ksh626 million. This is aimed at helping youth-owned businesses scale and thrive in Kenya’s competitive business environment.
✅ Ksh990 million for Film Development Services
In recognition of Kenya’s growing creative economy, the government has allocated nearly Ksh1 billion to support the film and entertainment industry. The funding is expected to help nurture local talent, promote Kenyan films, and create jobs in the creative sector.
✅ Ksh300 million additional funding for the Hustler Fund
The Hustler Fund, which provides low-interest loans to households and micro, small, and medium-sized enterprises (MSMEs), will receive an extra boost to increase access to affordable credit. This is aimed at easing financing challenges for small businesses and spurring grassroots economic growth.
Focus on Job Creation Through Climate WorX
Beyond financial support, the government has prioritized job creation through environmental programs. CS Mbadi announced the nationwide expansion of Climate WorX, an initiative aimed at employing over 110,000 youth across all 47 counties.
Originally launched in 2024 in Nairobi’s informal settlements, Climate WorX has been praised for empowering young people to improve their communities while earning a decent livelihood.
Under the initiative, youth will engage in:
🌱 Tree planting – contributing to Kenya’s environmental sustainability goals and combating climate change.
🚧 Building roads and infrastructure – improving access within neighbourhoods and supporting local economic activities.
🧹 Environmental clean-ups – enhancing hygiene and sanitation in communities, particularly in urban and peri-urban areas.
Mbadi described Climate WorX as a social support program that not only creates jobs but also gives young people the opportunity to contribute meaningfully to national development.
“The initiative is designed to empower youth, provide them with dignified work, and support community transformation,” said Mbadi.
A Broader Economic Vision
The Ksh105.6 billion youth and small business allocation is part of a broader government strategy to stimulate inclusive economic growth and reduce unemployment. By investing in programs that offer skills, capital, and opportunities, the government aims to build a resilient economy driven by innovation, enterprise, and community service.
In his budget speech, CS Mbadi stressed that these allocations are designed to:
- Expand access to affordable credit for small businesses and young entrepreneurs.
- Create sustainable jobs for the youth, especially in underserved areas.
- Promote the creative economy as a key pillar of national development.
- Enhance social support systems that empower communities to thrive.
What This Means for Kenyan Youth and Entrepreneurs
For young Kenyans, the 2025/2026 budget presents new hope in the fight against unemployment. Whether through skills training at NYS, loans from YEDF and Hustler Fund, or job opportunities under Climate WorX, there are increased avenues for economic participation.
Entrepreneurs, particularly those running MSMEs, will benefit from improved access to low-interest credit and business development services, helping them to grow and create additional jobs.
Meanwhile, players in the entertainment and creative sectors can look forward to more government support in promoting Kenyan content locally and internationally.
Conclusion
The government’s Ksh105.6 billion youth and MSME package demonstrates a clear commitment to building an inclusive economy where young people are empowered to lead Kenya’s development agenda. As these programs roll out, their success will depend on effective implementation, transparency, and sustained collaboration with the private sector and development partners.