BUSINESS

World Bank Adopts Blockchain to Safeguard Nyota Youth Funds

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The NYOTA Project logo
The NYOTA Project logo
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The World Bank has announced that it is using blockchain technology to make sure that money under the National Youth Opportunities Towards Advancement (NYOTA) Project actually reaches the young people it is meant to support.

This step is part of a wider effort to improve transparency and close all loopholes that could allow misuse of public funds.

In a letter dated November 13, addressed to High Court advocate Francis Wanjiku, the Bank explained that it has put in place very strict oversight systems. These systems are meant to track every shilling, from the moment funds leave the source to the moment they reach the final beneficiary.

“We appreciate your observations on the need to ensure strong governance, transparency, and accountability in project implementation,” the Bank said.

Adding;

“We have instituted measures to maintain enhanced monitoring and accountability.”

NYOTA was launched in June 2023 as a five-year youth empowerment programme funded through both credit and grants from the World Bank.

The project covers all 1,450 wards in Kenya and responds to the challenges facing young people, including unemployment, poor-quality jobs, and limited access to social protection. It offers business training, startup support, skills development, and employment opportunities, especially targeting youth who did not progress far in the formal education system.

According to the World Bank, the blockchain system creates an untamperable trail of all financial transactions. Because no one can alter records without leaving a trace, this greatly reduces the chances of political manipulation or mismanagement of funds.

The NYOTA Project also includes a grievance redress system, which allows anyone to report fraud, coercion, or any other irregularities. These complaints can be made anonymously through tools such as the Integrity Complaint Form or the Grievance Redress Service. This is meant to ensure that ordinary citizens have a voice and can hold institutions accountable.

Even with these safeguards, some lawmakers and civil society groups have raised concerns about possible favouritism in selecting beneficiaries.

However, the World Bank insists that the process remains open, transparent, and fully verifiable. It points out that the NYOTA Project Appraisal Document is publicly available, meaning anyone can review how the programme is designed and how money is supposed to flow.

Beyond the governance measures, the project has already made progress on the ground. Government reports show that NYOTA received more than 1.4 million youth applications through mobile platforms. After a randomisation and verification process, about 180,000 applicants were shortlisted. A significant number of women, roughly 46%, are among those selected, and thousands of youths living with disabilities have also been included.

Under the entrepreneurship support track, beneficiaries receive Ksh 50,000 in seed capital. This is released in two stages: Ksh 25,000 after completing business training, and another Ksh 25,000 after mentorship and evaluation.

In regions such as Western Kenya, more than 13,000 youth have already undergone training and received their first instalment.

Another part of the programme focuses on workplace skills. Through the On-the-Job Experience component, the project plans to place 90,000 young people into internships or apprenticeships where they can gain practical experience.

There is also a Recognition of Prior Learning pathway to certify skills young people already have but have never formally documented.

NYOTA also promotes savings among youth by enrolling around 190,000 young people into the NSSF’s “Haba Haba” scheme.

The project matches their savings at a 2:1 ratio, up to Ksh 6,000. Young pregnant mothers may qualify for an additional maternity benefit if they save consistently over a 4-month period.

On a broader scale, the project aims to equip 600,000 youth with digital skills so they can engage more effectively with government procurement systems and apply for available public and private opportunities.

It also strengthens government institutions so they can coordinate youth programmes better and ensure long-term sustainability.

Despite lingering scepticism, especially given Kenya’s history with youth funding scandals, the World Bank maintains that NYOTA has strong protections in place.

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