Ruto Expands NYOTA Support With Two-Year Licence Waiver

President William Ruto has ordered a two-year waiver on county business licence fees for eligible NYOTA enterprises, adding another layer of support to the government’s flagship youth entrepreneurship programme.

The directive broadens the National Youth Opportunities Towards Advancement (NYOTA) initiative beyond startup financing by lowering one of the recurring costs that young businesses face after launch. It comes as beneficiaries continue receiving the second tranche of the programme’s KSh50,000 business support package and follows months of work between the national government and county administrations to establish how the waiver would be implemented.

Government expands NYOTA support beyond startup grants

The licence waiver forms part of a wider effort to improve the survival chances of businesses established through NYOTA.

Under the programme, beneficiaries receive KSh50,000 in startup support in two tranches of KSh25,000. For every disbursement, KSh22,000 is credited to a beneficiary’s NYOTA wallet for business use, while KSh3,000 is directed into the NSSF Haba Haba Savings scheme.

Implementation of the waiver, however, required coordination with county governments because business permits fall under devolved functions.

Earlier this year, Cooperatives and MSME Development Principal Secretary Susan Mang’eni said the ministry was working with all 47 counties to develop a common implementation framework after identifying differences in local licensing requirements and business categories.

The ministry also began sharing beneficiary data with county governments so eligible businesses could be identified for the exemptions.

Why business licence costs matter for young entrepreneurs

Although county licence charges differ across the country depending on business type and location, they represent one of the first regulatory costs many informal enterprises encounter as they formalise operations.

Removing those fees for two years allows beneficiaries to retain more capital during the critical early stages of business development.

The waiver also complements NYOTA’s mandatory mentorship and Business Development Support training, which are intended to improve business management skills before entrepreneurs receive the final instalment of funding.

Rather than focusing only on grant distribution, the programme now combines financing, business training, regulatory relief and structured savings.

A wider package of financial support for beneficiaries

The licence waiver arrives as government rolls out other financial features built into the programme.

Besides the KSh22,000 allocated directly to businesses from each tranche, KSh3,000 is automatically saved through the NSSF Haba Haba platform. Of that amount, KSh900 is invested in a Money Market Fund while KSh2,100 is placed in long-term savings.

The government has since clarified that beneficiaries cannot withdraw all of those savings immediately.

Only 30 per cent of accumulated savings is available as short-term savings after one year through the *254# service, while the remaining 70 per cent stays locked for longer-term financial goals. Half of that locked balance becomes accessible after five years.

The programme also matches voluntary savings at a two-to-one ratio for beneficiaries who maintain consistent saving for at least six months, creating another incentive to build long-term financial resilience.

From rollout delays to policy implementation

The licence waiver follows several months of adjustments to the NYOTA rollout.

The second KSh25,000 business support payment was delayed after the government consolidated what had initially been planned as phased beneficiary intakes into a single nationwide rollout following overwhelming demand.

Officials attributed the delay to budget pressures created by bringing multiple cohorts into one financial year.

During that period, the World Bank conducted an implementation support mission with NYOTA officials to review programme progress and address operational challenges as disbursements resumed.

The ministry also spent several months issuing updates on mentorship schedules, classroom business training, savings allocations and the release of the second tranche before payments resumed.

What the licence waiver could mean for NYOTA’s long-term success

The licence waiver strengthens NYOTA by addressing a cost that begins after businesses are established rather than only helping entrepreneurs at the point of launch.

Together with startup grants, structured savings, mentorship, business training and county-level regulatory support, the measure reflects a broader attempt to improve business sustainability beyond the initial injection of capital.

For young entrepreneurs, the value of the programme will ultimately depend not only on receiving startup funding but also on whether these complementary measures help businesses remain operational long after the grants have been spent.

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