Thousands of NYOTA beneficiaries hit by withdrawal limit as government explains savings rules

Thousands of young Kenyans receiving their NYOTA savings have been told they won’t be able to access the full amount immediately, with most of the funds locked away under the programme’s long-term savings plan.

Young Kenyans benefiting from the National Youth Opportunities Towards Advancement (NYOTA) project have received fresh clarification after questions emerged over access to their savings allocations.

In a public notice issued on Wednesday, July 1, the programme explained that beneficiaries can only withdraw a portion of their savings, even after the funds have been credited.

Under the rules, just 30% of a beneficiary’s savings will be available as short-term savings. The amount can be accessed after one year through the *254# USSD service.

The remaining 70% will stay locked as part of the project’s long-term savings plan, meaning beneficiaries won’t be able to withdraw it immediately.

Of that locked portion, half will only become available after five years under the programme’s savings framework.

“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 notice stated.

The clarification comes after the government began disbursing the KSh3,000 savings component to thousands of youths through the NSSF Haba Haba Savings initiative, prompting many beneficiaries to ask when and how they could access the money.

Those who have already received the first instalment of the KSh50,000 NYOTA business start-up grant were advised to expect notifications confirming that their savings allocations had been credited.

Under the programme, every KSh25,000 disbursement is split into two portions. Beneficiaries receive KSh22,000 in their NYOTA wallet for business activities, while KSh3,000 is reserved as savings.

The government said KSh900 of the savings allocation is invested in a Money Market Fund (MMF), while the remaining KSh2,100 is deposited into a locked savings account.

The programme also rewards consistent savers by matching voluntary savings at a 2:1 ratio, provided beneficiaries have saved continuously for at least six months before qualifying for the additional contribution.

According to NYOTA, the restrictions are designed to encourage a savings culture among young people while helping them build long-term financial security rather than spending the funds immediately.

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