NYOTA Project Explains Why Beneficiaries Can’t Withdraw All Their Savings at Once

The NYOTA Project has moved to explain why beneficiaries are unable to withdraw all of their savings at once. 

In an update on Wednesday, July 1, the programme said beneficiaries can only access part of their savings while a large portion of the funds is reserved for long-term financial goals.

"Only 30% of your savings is available as Short-Term Savings via *254#. The remaining 70% is locked for long-term goals, with 50% accessible after 5 years," the statement read. 

At the same time, the project outlined the maximum matching incentive available to participants, noting that savers can receive up to Ksh3,000 from the programme regardless of how much they save beyond the qualifying threshold.

According to the NYOTA Project, the maximum matching benefit is Ksh3,000, which represents the highest amount that can be added to a beneficiary’s savings through the matching incentive.

The programme further provided examples of how the matching incentive works in practice. 

A beneficiary who saves Ksh1,000 receives an additional Ksh500 from the programme, bringing the total savings to Ksh1,500.

For those who save Ksh6,000, the programme contributes Ksh3,000, resulting in total savings of Ksh9,000.

However, the project noted that savers who deposit more than Ksh6,000 do not receive additional matching funds beyond the Ksh3,000 cap. 

For instance, a beneficiary who saves Ksh7,000 still receives only Ksh3,000 from the programme, bringing the total amount to Ksh10,000.

This comes weeks after the government addressed a viral notice circulating on social media claiming that the second tranche disbursement of the NYOTA business start-up capital has been suspended.

In a statement on Wednesday, May 20, MSMEs Development Principal Secretary Susan Mang’eni assured beneficiaries that preparations for the nationwide release of funds were still ongoing and that the process would be completed soon.

The clarification came after a purported media release claimed that the second disbursement had been suspended due to economic and fiscal considerations. 

Addressing the reports, Mang’eni stated that the government remained committed to the programme and asked the public to rely only on official communication channels.

"We acknowledge inquiries from NYOTA Project beneficiaries and the general public regarding the 2nd tranche of the NYOTA business start-up capital disbursement.

“The Government is working on the nationwide disbursement processes, which we expect to finalise soon,” she said.

Mang'eni noted that beneficiaries would be informed once the process is complete.

"Once complete, we will announce through the official communication channels and broadcast a live media address on all mainstream media stations," she added.