President William Ruto Launches NYOTA Project in Kakamega
President William Ruto recently launched the NYOTA project at the Mumias Sports Complex in Kakamega, marking a significant step towards supporting young entrepreneurs and small-scale business owners. The event highlighted the government’s commitment to fostering economic growth through financial inclusion and targeted support programs.
During his address, Ruto emphasized the importance of responsible borrowing and repayment, particularly in relation to the Hustler Fund. He pointed out that individuals who took out small loans but failed to repay them were not only hindering their own progress but also undermining the effectiveness of the fund system itself.
Criticism of Hustler Fund Defaulters
Ruto argued that defaulters deprived themselves of the opportunity to increase their borrowing limits and improve their standard of living. He criticized those who had taken KSh 500 and disappeared without repaying, stating that such actions led to long-term financial setbacks.
“Kuna watu walichukua mia tano na wakahepa. Hasara ni yako. Wewe jipange! Kwa sababu sahizi ungekuwa unachukua elfu hamsini lakini kwa sababu ulichukua mia tano, unahangaika nayo. Tumieni akili bwana.”
Translated:
“Some people took KSh 500 and vanished. You bear the loss. You ought to get your act together. You would be receiving KSh 50,000 by now, but you are still struggling with the KSh 500 since you took the KSh 500 and defaulted. Please use common sense.”
This statement underscored the president’s belief that financial responsibility is key to unlocking greater opportunities for borrowers.
What Comes Next for Defaulters?
Despite the criticism, Ruto assured defaulters that they would not be forced into immediate repayment. He encouraged them to take their time and return to the system when they were financially stable.
“Relax, nobody is after you for the KSh 500 you disappeared with. Please get your act together. Come and borrow KSh 1,000 once you are back on your feet, and you’ll continue to rise gradually from there,” he said.
The president reiterated that the Hustler Fund was designed to assist young people starting small businesses, including mama mboga, boda boda riders, and other small-scale entrepreneurs. He emphasized that consistent repayment would allow borrowers to build creditworthiness and access higher loan amounts over time.
Understanding the NYOTA Project
The NYOTA project, launched by the president, aims to provide young people with the tools and resources needed to engage in income-generating activities, acquire new skills, and receive mentorship. This initiative is intended to create structured pathways to financial independence by combining training, loan availability, and enterprise support.
The program will benefit at least 100,000 young people nationwide, offering each a KSh 50,000 grant. This funding, provided by the government and the World Bank, totals KSh 5 billion. Ruto encouraged participants to start small and believe in their future.
“I want to encourage you that you can start small. There is a future,” he said.
Access to NYOTA Funds for Defaulters
Earlier reports indicated that over 9 million Hustler Fund defaulters were excluded from accessing NYOTA business grants. The government maintained that these individuals would remain blacklisted until they cleared their outstanding loans.
On September 12, Susan Mang’eni, Principal Secretary for the State Department of Micro, Small, and Medium Enterprises Development, stated that borrowers had yet to repay KSh 5 billion in outstanding loans. This move highlights the government’s strict approach to ensuring accountability within the financial system.