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World Bank defends Ruto's Nyota programme amid opposition backlash
Qimiao Fan is the World Bank Division Director for Kenya, Rwanda, Somalia and Uganda.
The World Bank has defended the National Youth Opportunities Towards Advancement (Nyota) programme, which has drawn criticism from opposition leaders.
World Bank Country Director for Kenya Qimiao Fan said the multilateral development lender decided to support the initiative because it proved to be an innovative, inclusive and transparent way to deal with unemployment among the youth in the country.
According to Mr Fan, unemployment remains one of the biggest challenges derailing development in Kenya.
Speaking on Thursday during the regional Nyota capital disbursement rollout in Malindi, Kilifi County, he explained that the programme is aligned with the World Bank’s development objectives. The event was presided over by President William Ruto.
“Our entire programmes are squarely focused on supporting Kenya to create better and more inclusive jobs. From supporting your policy reforms to make doing business easier, to investing in energy, roads, technology and specific sectors like agriculture, the sole objective is to support creation of more jobs and we’ll continue to do so,” he said.
Despite criticism by a section of politicians against the programme targeting the youth, Mr Fan stressed that the Bretton Woods institution will continue to support the government in its implementation. He added that the programme’s success will be measurable in the end.
“Ultimately, the success of Nyota will be measured by how employable beneficiaries will become and how many of you will be able to create businesses, not just to employ yourselves but others as well. It will also be measured by how many decent jobs will be created,” he stated.
Some of the opposition leaders who have strongly faulted the programme are Wiper leader Kalonzo Musyoka and his United Green Movement (UGM) counterpart David Maraga.
In early January, Mr Musyoka equated the programme to bribery ahead of the 2027 General Election. The former vice president questioned what kind of business investment anyone could make with the about Sh22,000 given to each beneficiary.
On his part, in a scathing opinion piece on nation.africa by Mr Maraga termed Nyota as proof of “the intellectual and moral bankruptcy of a government that has run out of ideas and credibility.” The former Chief Justice called on the government to instead focus on fixing the real, underlying issues that cause unemployment, including creating a functional business environment.
“These World Bank loans will be repaid by the same young people now being asked to clap for temporary stipends. This is not empowerment; it is generational gaslighting,” he stated.
Dr Ruto, accompanied by several government officials and politicians, has so far made trips to different parts of the country for the disbursement of Nyota funds. At the Kilifi event, Sh252 million was distributed to 5,040 young entrepreneurs drawn from 60 wards in Lamu, Kilifi and Tana River Counties, with a similar event planned in Mombasa on Friday, February 6.
The president challenged Kenyan youths to take advantage of the programmes that the government is rolling out across the country, saying he is delivering on the promises he made during the 2022 campaigns.
President Ruto reaffirmed the government’s commitment to empowering young people by creating employment opportunities and equipping youths with skills to grow businesses and access contracts. He added that the programme will enable them to become job creators and strengthen the country’s workforce through skills development.
Implementing agencies
“We have to agree that there are some programmes which were meant for the youth in the past, but they failed. But with this Nyota project supported by the World Bank, the government is keen on uplifting the disadvantaged youths who did not progress in their studies and those who are keen on starting a business,” he said.
Details from the World Bank show that the total project cost for Nyota is $200 million (Sh25.8 billion), with the Micro and Small Enterprise Authority, Ministry of Youth Affairs, The Arts and Sports, and National Social Security Fund (NSSF) listed as implementing agencies.
The programme, described as a scaled-up version of the Kenya Youth Employment and Opportunities Program (KYEOP), is set to run from June 21, 2024, up to December 31, 2028. KYEOP was also funded by the Washington-based lender from 2016 to 2023, targeting youth aged 18 to 29 with a focus on informal sector skill development.
In the first phase of Nyota, each beneficiary will receive Sh25,000, with Sh22,000 credited directly to their mobile wallets to support their business operations and Sh3,000 deposited into a Haba na Haba Savings Account managed by the NSSF.
In the second phase, beneficiaries will receive an additional Sh25,000, bringing the total start-up capital support to Sh50,000 per entrepreneur.
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