Lawmakers quiz delays in multi billion-shilling Nyota jobs project

A parliamentary committee has cast doubt on the rollout of a countrywide job creation project following its lengthy delay despite drawing over one million applicants.

The National Assembly Committee for Trade, Industry and Cooperatives on Thursday sought the status of the National Youth Opportunities Towards Advancement (Nyota) project, saying it could cause anxiety among the youth who are highly expectant of receiving the money to fund their projects.

This came after the State Department of Micro, Small and Medium Enterprises Development Principal Secretary Susan Mang’eni said the government is ready to implement the project, but has only Sh1.2 billion out of the Sh8.8 billion required.

Mang’eni sought assistance from the committee, saying there is a need to get additional resources since World Bank funds are available and getting the Sh7.6 billion deficit will push the project until the end of this financial year.

“The moment the project is declared effective, the World Bank makes the funds available. The project has generated a lot of interest, and if we can be supported to get the Sh7.6 billion, we will roll out in quick succession,” the PS said.

But the committee chairperson, Ikolomani MP Bernard Shinali, said the ministry needs to publish the names of those who are successful for the project so that they can know whether to still bank on it or consider other options.

“You said the Sh1.2 billion available may not be enough, tell us the shortfall and when it is required. This is a nationwide programme and the number of youths who apply is huge," Shinali said.

"If you love our youth, from those you know are successful, could you publish their names so that they can know if they can still bank their hopes on this project?” 

Mathare MP Anthony Oluoch said Nyota is one of the biggest projects in the country and should be implemented as planned to provide the youth with employment in the wake of Gen Z protests.

“This is one of the biggest projects that can be utilised to avoid much tension. It may ignite Gen Z, and we may not be able to control it,” said Oluoch.

Gichugu MP Robert Gichimu wondered why the State advertised the project, which gave hope to the young people, if it did not have the resources at hand.

“What was the urgency of advertising for the youths to apply if you knew that the money was not yet with you? How we wish that Parliament had been involved from the beginning. Next time there is such a project coming through the Executive, it is good that Parliament is involved,” Gichimu said.

Vihiga MP Beatrice Adagala echoed Gichim's sentiments, saying:

“When it started to get the youth to apply, I thought it was something that was already there. Why were they told to apply, and why is it taking too long? You are getting the youth impatient. We have to be serious with Nyota. It is a project that will help the youth, and it is high time that the money is disbursed for the youth to continue with their activities.”

According to Mang’eni, Nyota is a five-year youth creation project in partnership with the World Bank, for the period 2024 to 2029. It is expected to be funded through credit to the government, the International Development Assistance (IDA) and the Global Finance Facility (GFF).

The PS said the project targets over 800,000 vulnerable youth aged 18–29 and up to 35 for persons with disability, with Form Four level of education as a minimum requirement. It is scheduled to be implemented in all 1450 wards across all counties.

“The project responds to the needs for job creation by supporting initiatives to launch new youth-owned businesses, improve productivity and enhance the potential of existing micro enterprises,” Mang'eni said.

She told the committee that the project has four components, with the first one, worth USD82 million, focusing on labour supply side constraints and offering knowledge transfer and skills development, as well as intermediation-related initiatives.

Here, there will be direct placement of youth under employers and master apprenticeship to enable them to gain first-hand skills with the testing and standards instruments reviewed.

The component is being implemented by the State Department for Youth Affairs and Creative Economy and their Labour and Skills Development counterparts, the National Industrial Training Authority (NITA) and National Employment Authority (NEA).

Under component 2, it is worth USD87 billion, focuses on business support demand side constraints and will provide youth with training for entrepreneurship development of core business skills, other business development services and provide them with seed money to start or expand their business.

Component 3 of USD20 million is being implemented by the National Social Security Fund (NSSF) and focuses on enhancing saving opportunities among beneficiaries through the Haba Hab saving scheme, and those who make savings will be rewarded with a matching contribution from NSSF.

The fourth component of USD40 million supports strengthening the youth employment system by building county government systems and capacity to engage more youth and enable them to invest their resources to increase the number of beneficiaries under the NYOTA project.

“Some 600,000 beneficiaries will undergo skilling on catalytic funds and training on Access to Government Procurement Opportunities (AGPO) and support for youth-centric legislation. The component is being implemented by the State Department for Youth Affairs and Creative Economy, and that of the MSMED,” she told the committee.

The PS said that the project was negotiated on May 17, 2023, and the financing agreement was signed on December 6, 2023, and after the project met the effectiveness conditions, it was declared effective on June 21, 2024.

On component 2, which is expected to create at least 110,000 direct jobs through entrepreneurship, the PS said they have achieved some progress in readiness for the first disbursement next month.

She said that they have so far completed on onboarding of an entrepreneurship aptitude test film communication firm, and a monitoring and evaluation consultant.

On the intake process for component 2 for business support, the PS said that the application process was rolled out through the financial inclusion digital platform, which was closed on May 16 with a total number of applicants of 1.08 million.

“Data cleaning and screening is ongoing, and the technology service provider working closely with the project technical teams is developing the selection engine. The selection process is expected to be completed by the end of this month,” she said.

In the last financial year 2024/25, the state department received an allocation of Sh1.02 billion, which was drawn during the first half of the financial year after getting approval for the full year access from the National Treasury.