Kenya will establish a state-owned Youth Enterprise Investment Bank with Ksh9.75 billion (USD 75.5 million) in capital to expand financing for young entrepreneurs, President William Ruto announced during International Youth Day celebrations in Kakamega.

The President said that the institution will offer concessional loans, credit guarantees and capacity-building to address structural barriers such as lack of collateral, high borrowing costs and limited business development support. The bank is expected to be operational before year-end.

The initiative comes as youth unemployment remains a significant economic challenge, with many young Kenyans unable to secure financing to start or expand businesses. The bank will operate alongside the National Youth Opportunities Towards Advancement (NYOTA) programme, a five-year, World Bank–funded project targeting unemployed youth aged 18–29, and up to 35 for persons with disabilities.

Under NYOTA, beneficiaries will receive Ksh50,000 (USD 387) each starting in September, alongside training on government procurement, mentorship, market linkages, and business development services.

The government also intends to release Ksh5 billion (USD 38.7 million) to support small-scale ventures, with 70 young entrepreneurs in each ward nationwide expected to benefit. Beneficiary selection is due to be completed next week.