Govt Weighs Tax Holiday to Boost Young Entrepreneurs

Young people hoping to launch small businesses may soon get a major boost, as the government considers giving first-time entrepreneurs a tax holiday.

During a visit to Machakos, Principal Secretary for MSME Development Susan Mangeni said the government is studying options to simplify the rules that young business owners face. She said many startups are weighed down by too many licenses and high compliance costs.

According to Mangeni, county leaders in Western Kenya have already taken the lead. They recently announced a two-year tax holiday for youth graduating from the Nyota business support program. She said the national government is exploring similar steps to push more young people toward creating jobs instead of searching for them.

The Nyota program, which is currently running in 25 counties, is training youth in basic business skills, offering them seed capital and linking them with mentors.

Selected participants receive half of their startup capital after completing four days of training, followed by two months of guided mentorship.

They later return for another round of classes that focus on market access and funding opportunities before being placed in a second mentorship stage.

Mangeni said the program aims to support at least 70 young people in every ward, adding that officials are intentionally over-recruiting to allow for possible dropouts.

Demand has far exceeded available slots, with more than two million applications submitted nationwide. Only 100000 youth will join the first group.

She described the overwhelming interest as a “positive challenge,” saying it shows increasing confidence among young people who want to “become job creators rather than job seekers.”

Machakos Town MP Caleb Mule also urged the youth to take advantage of digital tools. He encouraged them to “use their phones in search and creation of job opportunities.”

Local administrators have been directed to mobilise young people for the ongoing sessions, which run until Tuesday. Mangeni cautioned that absenteeism wastes resources. “Missing even one beneficiary translates to Sh50000 in unused funds,” she said.

The four-month training will end with graduates joining the broader MSME ecosystem, where they can access more funding and business networks