The National Youth Opportunities Towards Advancement (NYOTA) programme has provided more details on how beneficiaries can access their savings after many young people started receiving their savings allocations under the government initiative.
In a public notice released on Tuesday, July 1, NYOTA clarified that beneficiaries will not be allowed to withdraw all of their savings at once.
Instead, the programme has introduced a structured withdrawal system designed to encourage long-term saving and financial discipline among young people.
According to the notice, only 30 per cent of a beneficiary’s total savings will be available as short-term savings. These funds can be accessed after one year through the *254# USSD platform.
The rule applies to both the savings automatically set aside under the NYOTA programme and any additional voluntary savings made by beneficiaries.
NYOTA explained that the remaining 70 per cent of the savings will stay locked to support long-term financial planning. Out of this locked amount, 50 per cent will become available after five years under the programme’s savings plan, while the balance will continue to remain invested according to the project’s guidelines.
In its statement, the programme emphasized that the savings structure is meant to help young people develop a culture of saving instead of spending all their money immediately after receiving it.
“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,” NYOTA stated in its public notice.
The clarification comes after many beneficiaries raised questions following the government’s announcement that it had started releasing the Ksh3,000 savings component to thousands of young people participating in the National Social Security Fund (NSSF) Haba Haba Savings initiative.
Many beneficiaries had expected to access the entire amount immediately after receiving notification that their savings had been deposited. However, the latest communication confirms that withdrawals will follow the programme’s savings policy rather than allowing full access at once.
The government has also informed beneficiaries who have already received the first instalment of the Ksh50,000 NYOTA business startup grant to expect official notifications confirming that their savings allocations have been credited to their accounts.
Under the NYOTA business grant programme, each beneficiary receives funding in two instalments of Ksh25,000. From every Ksh25,000 disbursement, Ksh22,000 is deposited into the beneficiary’s NYOTA wallet to support business activities, while Ksh3,000 is automatically allocated to savings.
The programme further explained how the savings are managed. Out of the Ksh3,000 set aside, Ksh900 is invested in a Money Market Fund (MMF), allowing beneficiaries to earn returns on part of their savings. The remaining Ksh2,100 is deposited into a locked savings account that cannot be accessed immediately.
Besides the mandatory savings, NYOTA also encourages participants to make voluntary savings. To motivate consistent saving, the programme offers a matching contribution at a ratio of 2:1.
This means that for eligible voluntary savings, the programme contributes twice the amount saved, provided the beneficiary has maintained regular savings for at least six consecutive months and meets the programme’s requirements.
Officials say this matching arrangement is designed to reward disciplined saving habits while helping young entrepreneurs build stronger financial foundations for the future.
According to NYOTA, the decision to lock a large portion of the savings is intended to promote responsible financial management among young people.
The programme believes that encouraging beneficiaries to save over a longer period will help them build financial resilience, create a safety net for future needs, and support sustainable economic growth.
As more beneficiaries continue receiving their business grants and savings allocations, NYOTA has urged participants to familiarize themselves with the programme’s savings and withdrawal guidelines to avoid confusion and better plan how they will use their funds in the coming years.
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