The Lower Eastern Times Opening The Third Eye
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About 9 million Kenyans who defaulted on their Hustler Fund loans will be barred from accessing the government’s new National Youth Opportunities Towards Advancement (NYOTA) fund, officials have confirmed.
The NYOTA initiative, a partnership between the Government of Kenya and the World Bank, seeks to empower young people by funding 100,000 youth-led enterprises. Each of Kenya’s 1,450 wards will have up to 70 beneficiaries, with each receiving KSh 50,000 in grants.
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However, government officials have emphasized that only applicants in good financial standing — specifically those who cleared their Hustler Fund loans — will qualify for consideration.
Speaking during a county sensitization forum at the Maasai National Technical Institute in Kajiado, Irrigation Principal Secretary Ephantus Kimotho said that applicants will undergo a rigorous verification process.
“Those who still owe Hustler Fund money will not qualify. The process will begin with applications, followed by validation before 70 youths are selected from each of Kajiado’s 25 wards,” he said.
In Migori County, Social Protection PS Joseph Motari echoed the same message, saying defaulters have shown they cannot be trusted with public funds.
“You took Hustler Fund money and never repaid. Please clear your arrears to be eligible. You must be in good standing,” he told residents.
In an earlier pilot phase in Kajiado, out of 24,000 applicants, only 318 youths eventually qualified after screening.
Since its launch in 2022 under President William Ruto, the Hustler Fund has faced repayment challenges, with the State Department for MSMEs reporting in September that defaults had reached KSh 5 billion.
According to PS Susan Mang’eni, those who have deliberately failed to repay their Hustler Fund loans will also be locked out of other state credit initiatives, including the Social Health Authority’s Lipa Pole Pole plan.
The government has urged all defaulters to clear their pending Hustler Fund loans to avoid exclusion from future empowerment programs.
