President William Ruto’s Sh 29.7 billion ($229 million) National Youth Opportunities Towards Advancement (Nyota) project is staring at collapse following failure by the government to supplement World Bank funding.

Lawmakers yesterday questioned the rush towards launching the project.

Cooperatives and Micro, Small and Medium Enterprise Development Principal Secretary Susan Mang’eni told MPs that out of the total funding required from the government side of Sh9.5 billion, the ministry has only received Sh1.2 billion, leaving a deficit of Sh7.62 billion.

Appearing before MPs, Mang’eni regretted that failure to provide the funds will see WB reclaiming its funding just like it did with the Kenya Youth Employment and Opportunities Project (KYEOP) which was aimed at increasing employment and earnings opportunities for young Kenyans.

She pleaded with the MPs to push for the money to ensure the project benefits the over 800,000 youths aged 18 to 29 years, and up to 35 years for persons with disabilities.

Said Mang’eni: “If we do not get the funding, then we will suffer the way KYEOP suffered as the World Bank took the money. However, unlike this one, KYEOP was not in the whole country but all the money had to be refunded. However if we get the Sh7.6 billion we will be able to finalise all the work with that and ensure that by June next year we will have implemented the entire process.”

Job creation

Nyota is a five-year Youth Job creation project in partnership with the World Bank (2024-2029). It is funded to the tune of $229 million through a credit of $200 million, IDA Grant of £20 million and Global Financing Facility (GFF) Grant of £9 million.

The project which is being implemented in all 1450 wards, 290 constituencies is aimed at increasing increase employment, earnings and promote savings for selected vulnerable youth, at national scale”

In her presentation Mang’eni explained that the delays in disbursement of the funds is because the intake process took long as it attracted over one million applicants.

The project she said aims at placing 90,000 youths in employment /self-employment through apprenticeship, 190, 000 into Habahaba savings programme by the National Social Security Fund (NSSF), 600,000 in catalytic funds through Access to Government Procurement Opportunities (AGPO) and 400 youths to be empowered with technical skills certified under recognition of Prior Learning.

Further, she disclosed that the project will be implemented in four components, component one worth Sh10.63 billion ($82) focuses on labour supply constraints , component two worth Sh 11.3 billion ($87) focusses on the business support demand site constraint, component three worth Sh 2.6 billion ($20),  is being implemented by NSSF while component four with Sh 5.2 billion ($40) supports strengthening of youth employment systems.

But despite her insisting the project was on course, MPs who sit in the Trade, Industry and Cooperatives Comittee led by Ikolomani MP Bernard Shinali sought to know why the state department rushed it, why lawmakers were not involve from the start and what would be the fate of the project should the government fail to provide funding.

Sh7.6b shortfall

Said Shinali: “ Is this money from the World Bank with us? This project is a nation wide programme and many youths have applied yet the window provided was very short.”

“PS please tell this committee with the shortfall that is there when do you expect to get this money. If you don’t get the Sh7.6 billion, is this project going to stall.”

Aldai MP Marianne Kitany and her Gichugu counterpart Robert Gichimu sought to know why the state department proceeded with the project yet two months down the line it was yet to commence.