From Hustler Fund, Empowerments and NYOTA: Broke govt that is always dishing out money

NYOTA program is aimed at transforming the lives of vulnerable youth and it draws its funding, mainly, from the World Bank. 

The government hopes that within the next five years, this project will create employment opportunities, enhance income generation, and promote savings among the youth population. NYOTA projects’ purpose and goal, according to their public site, is to build a resilient and self-sufficient youth population that contributes meaningfully to Kenya's socio-economic development and to empower vulnerable Kenyan youth by providing them with the necessary skills, resources, and opportunities to thrive in the modern economy. 

All these seem quite noble and caring, coming from a people centered and forward-looking administration.

Shift from empowerment programs?

For the better part of this year, Deputy President Kindiki Kithure, National Assembly majority leader Kimani Ichung’wah, MP Oscar Sudi and President William Ruto’s aide Farouk Kibet, have been leading an amorphous government-backed outfit that has traversed the length and breadth of the country, dishing out billions to all manner of groups and causes in the name of “empowerment.” 

When some citizens asked about the billions being splashed countrywide in “empowerment” drives when core sectors such as education and health suffered underfunding, leaders within the Kenya Kwanza administration defended the “empowerment” forums, saying it is part of the Bottom-Up Economic Agenda to elevate women and youth at the grassroots. 

They said those questioning the motives and sources of the funds were described as “having no agenda or plan to offer Kenyans.”

Kindiki, the de-facto “official face” of the empowerment offensive by the Kenya Kwanza government has visited 180 constituencies to date and his office says he should have done all 290 constituencies by May 2026. 

Kindiki says that under the new NYOTA project, the government will disburse Ksh.50, 000 to youth owned micro and small enterprises in each ward in the country to create more jobs and stimulate the economy. 

Kipchumba Murkomen, the Cabinet Secretary for Interior, weighed in by saying there is nothing wrong with the empowerment forums initiated by the government as it is clearly spelt in the Kenya Kwanza manifesto, captured within the Bottom-Up Economic Transformation plans and so it is not an after-thought.  

Speaking during an empowerment event at Kimorori grounds in Kenol town, Murang’a County, several leaders, led by Kindiki, censured those opposed to the empowerment drives claiming it was changing lives in the countryside. 

DP Kindiki told their critics to stop hiding behind social media platforms and face issues affecting the poor. Kindiki’s remarks, were made after a week after comments by former Deputy President and Democracy for Citizens Party (DCP) leader Rigathi Gachagua, while in Boston, US, seemed to dismiss the empowerment forums as public relations stunts which are disguised as development.

The former Chief Justice David Maraga, who has declared he will vie for the president’s seat in the next general elections also called out the “empowerment” forums being driven by the Kenya Kwanza administration and urged Kenyans not to be hoodwinked by short-term gain at the expense of meaningful development. 

Maraga, at a townhall meeting in Kirinyaga County, questioned the source of the money being disbursed under this program. 

“That is your money which has been stolen, yet you are now told you are given as empowerment. Those who have stolen are bringing it to you to be seen as caring. There is nothing of the sort,” asserted Maraga.

Currently, there is a case in court challenging the ongoing empowerment program. The petitioner, through Advocate Kipchirchir, alleges the money being dished out is for political purposes and not for development purposes as claimed. 

The petitioner is asking the court to determine the source of the funds being dished out as no such money has ever been gazetted or budgeted for.  Further, he alleges that DP Kindiki in June alone made 40 trips in Mt Kenya region dishing out over Ksh.100 million and has single-handedly dished out over Ksh. 1 billion nationally. 

The petitioner is asking the court to bring the perpetrators, namely, DP Kithure Kindiki, MP Sudi, CS Mudavadi, Speaker of the National Assembly Moses Wetangula, MP Kimani Ichungwa, and Farouk Kibet to account. 

The leaders, including others not named in court, are alleged to have dished out money and goods such as motorcycles and salon equipment to various groups under the guise of development yet the real aim is political gain in preparation for the next general elections, says the petitioner.

State House delegations 

President Ruto, in recent months, has gone flat out to host delegations from counties, such as Kiambu County who he promised Ksh.30 billion worth of housing projects as well as 30 new markets as they were hosted to lunch. 

A delegation from Meru Country were also hosted and promised many things. The President hosted teachers who came out with many promises such as promotion as well as receiving 100 million in cash reimbursements. 

Boda-boda (commercial motorcycle) riders were hosted and given goodies and cash at State House and so were representatives of youth from Nairobi who were given goodies for small businesses, a sumptuous lunch and some fare back home. 

While delegations, chosen with no publicly known criteria visit the house on the hill, taxpayers have continued to bear the costs. Recently introduced taxes have mostly targeted employed workers. 

The troubled Hustler Fund

In 2022, the Kenya Kwanza government established the Financial Inclusion Fund popularly referred to as “Hustler Fund” to avail cheap credit to “hustlers” but unfortunately it has been hit by record default rates. 

In late 2024, revelations to parliament that the Fund, which has disbursed over KShs.13 billion, has a default rate of 78 percent shocked the MPs. 

The Special Funds Accounts Committee requested the management of the Financial Inclusion Fund (FIF), to submit a comprehensive list of loan defaulters, detailing their names, amounts owed and contact information per constituency. 

The Committee also learned that the Fund was yet to present the required documentation to the Office of the Auditor-General. 

Members stressed the importance of resolving the 19 outstanding audit queries. Then FIF CEO Ms Elizabeth Nkukuu attributed the delays to miscommunication and a shortage of qualified staff within the Fund. 

Lawmakers also questioned the Fund's ability to manage substantial taxpayer funds without adequate personnel and raised concerns about the Fund's lack of risk management, questioning whether the funds were insured. 

Ms. Nkukuu told the Committee that the money was not insured, prompting further deliberation on the need for a risk assessment to safeguard taxpayer funds.

Hustler Fund, set up to help cushion and mitigate financial shocks for the informal sector which accounts for more than 80% of the workforce and contributes over 33% of the Gross Domestic Product (GDP) was a noble idea. 

The proposed main pillars of the financial inclusion fund were affordable credit, competitive savings & pensions products, comprehensive insurance solutions, access to affordable housing, market linkages, and financial literacy. 

This is almost the same scope of objectives as is pursued now under the NYOTA project. The troubled Hustler Fund has achieved almost none of these objectives due to poor planning and implementation. It goes ahead in existence albeit limping.

As if the same fate has been foreseen, the government has warned that Hustler Fund defaulters will not be considered in NYOTA programme. 

When President Ruto ran on the Kenya Kwanza ticket to take power against all odds in 2022, the slogan that carried the day was the “Hustler vs Dynasty” clarion call. 

The other slogan close to the Kenya Kwanza campaign was “Bottom-Up” to show his solidarity and understanding of the downtrodden majority. 

These two slogans attracted the hugely unemployed youth and the small-scale traders to their side and now, when government policies have failed to bring meaningful positive changes to this sensitive and rich voter-group, with elections round the corner, the President has to be keen to show his commitment to uplifting them as he promised lest he derails before the scheduled stop at the next station.

Is NYOTA a repetition of the troubled Hustler Fund? And will Ruto’s administration still dish out funds in the name of empowerment programs?