Hustler Fund Defaulters Blocked from Getting NYOTA Money
The government has announced that Hustler Fund defaulters Kenya will not qualify for the newly launched National Youth Opportunities Towards Advancement (NYOTA) program, which offers grants and training to empower young entrepreneurs.
Government Bars Defaulters from NYOTA Program
More than 9 million Kenyans who defaulted on Hustler Fund loans will be ineligible for the NYOTA initiative, according to Principal Secretaries leading the county-level awareness campaigns.
The NYOTA program, a partnership between the Government of Kenya and the World Bank, seeks to support the creation of 100,000 youth-led businesses across all 1,450 wards. Each ward will have up to 70 beneficiaries receiving Ksh.50,000 grants to start or expand enterprises.
Verification and Eligibility
During a sensitization forum at Maasai National Technical Institute in Kajiado County, Irrigation PS Ephantus Kimotho urged eligible youth to apply while warning defaulters that repayment history would be a key criterion.
“They are going to go through a long process of verification, which will start by applying. Those who have debts with Hustler Fund may not qualify,” Kimotho said.
Similarly, Social Protection PS Joseph Montari echoed the same message in Migori County, emphasizing that financial accountability is essential. “You were not able to repay because you went away with money. Please clear your Hustler Fund; you have to be in good standing,” he stated.
Background on Hustler Fund Defaults
Launched shortly after President William Ruto took office in 2022, the Hustler Fund was designed to provide affordable credit to small traders, youth, and low-income earners. However, repayment challenges have plagued the initiative.
In September, PS for Micro, Small, and Medium Enterprises Development Susan Mang’eni revealed that the total amount in default had reached Ksh.5 billion. She noted that borrowers who intentionally refused to repay would be locked out of future government funding programs, including NYOTA and the Social Health Authority’s Lipa Pole Pole plan.
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Youth Encouraged to Take Advantage
Despite the restrictions, government officials are urging eligible youths and persons with disabilities to take advantage of the NYOTA program. The initiative targets 820,000 young Kenyans, providing both financial aid and work experience opportunities.
Officials have said the screening process is meant to ensure that funds are given to responsible applicants who can make a meaningful impact on their communities.
A Push for Accountability and Opportunity
The move to exclude Hustler Fund defaulters Kenya from NYOTA is part of the government’s broader effort to promote financial responsibility and sustainability in public empowerment programs. Officials say it will help ensure that limited funds reach serious entrepreneurs who can turn grants into real businesses.
