NAIROBI, Kenya — President William Ruto has directed county governments to waive business permit fees for beneficiaries of the National Youth Opportunities Towards Advancement (NYOTA) programme for two years, in a move aimed at reducing regulatory barriers and accelerating youth entrepreneurship across the country.
The directive was issued on Friday during an event at Nairobi’s Ulinzi Sports Complex marking the release of the second tranche of funding under the government-backed youth empowerment initiative.
Addressing beneficiaries and government officials, Ruto said young entrepreneurs who have received support through the programme should be allowed time to establish and grow their enterprises without being burdened by immediate compliance costs.
“I therefore direct the Intergovernmental Budget and Economic Council, working together with county governments, to develop and implement a two-year business permit waiver for all NYOTA beneficiaries,” the President said.
He argued that many promising youth-led enterprises struggle not because of a lack of ideas or determination, but because of regulatory and administrative costs that emerge shortly after businesses are launched.
“Having seen what these young entrepreneurs have achieved with modest support, the government of Kenya now has a responsibility to remove the barriers that still stand in their way. Success should never be constrained by unnecessary bureaucracy,” Ruto said.
The President noted that emerging businesses require an incubation period before assuming the full burden of licensing and compliance obligations.
“Young businesses deserve the opportunity to find their feet before they bear the full cost of compliance,” he added.
National NYOTA identification system
Beyond the permit waiver, Ruto directed the Ministry of Cooperatives and Micro, Small and Medium Enterprises (MSME) Development to establish a national identification mechanism for all NYOTA beneficiaries.
The proposed system will create a unique profile for participants, enabling easier access to government programmes, incentives and support services designed to help businesses expand.
“I further direct the Ministry of Cooperatives and MSMEs Development to establish a national NYOTA identification mechanism so that every beneficiary can seamlessly access government services, incentives and opportunities designed to support enterprise growth,” the President said.
Government officials say the initiative is intended to improve coordination between agencies supporting youth enterprises while helping beneficiaries access future opportunities more efficiently.
New financing pathway for growing businesses
The President also instructed government-backed financial institutions to establish a dedicated financing product tailored specifically for NYOTA graduates seeking to scale up their enterprises.
The proposed growth facility will involve institutions including the Youth Enterprise Development Fund, Uwezo Fund, Women Enterprise Fund, Kenya Industrial Estates and other state agencies involved in enterprise development.
According to Ruto, the objective is to ensure that young entrepreneurs are not limited to the initial grant received through the programme.
“I also direct government finance institutions, including the Youth Enterprise Development Fund, the Uwezo Fund, the Women Enterprise Fund, Kenya Industrial Estates and other relevant agencies, to establish a dedicated NYOTA growth product. The first grant must never become the last opportunity,” he said.
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The move is expected to create a pathway through which successful beneficiaries can access additional capital to expand operations, hire employees and transition from micro-enterprises into sustainable small and medium-sized businesses.
Support beyond grants
The latest measures come as beneficiaries prepare to receive the second tranche of KSh25,000 under the NYOTA programme, which was established to support youth-led businesses, employment creation and economic inclusion.
Analysts say the combination of permit waivers, simplified access to government services and dedicated growth financing could significantly improve the survival rate of youth-owned enterprises, many of which fail within their first years of operation due to limited capital and high operational costs.
The directives also align with the government’s broader strategy of promoting entrepreneurship as a solution to youth unemployment, which remains one of Kenya’s most pressing socio-economic challenges.
If fully implemented by county governments and relevant state agencies, the new incentives could provide thousands of young entrepreneurs with additional support as they establish and expand their businesses.
