As youths begin receiving their savings allocations, the National Youth Opportunities Towards Advancement (NYOTA) project has clarified that beneficiaries will not be able to withdraw their entire savings at once.

🇰🇪 Breaking It Down

In a public notice issued on Wednesday, July 1, the NYOTA project explained its withdrawal rules, stating that only 30 per cent of a beneficiary’s funds can be accessed as short-term savings.

The provision applies to both savings disbursed under the project and voluntarily, which become available for withdrawal after one year via the *254# USSD service.

According to the notice, the remaining 70 per cent will be locked as long-term savings to be available for withdrawal at a later date.

📌 What You Need to Know

Of the locked amount, 50 per cent becomes accessible 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 was issued in response to a common question circulating after the government announced that it has begun disbursing the Ksh3,000 savings component to thousands of youths under the NSSF Haba Haba Savings initiative.

Youths who have already received the first portion of the Ksh50,000 NYOTA business startup grant were told to expect a notification confirming the allocation of their savings funds.

Under the initiative, Ksh22,000 from each Ksh25,000 disbursement is credited to the beneficiary’s NYOTA wallet for business use, while Ksh3,000 is set aside as savings.

The government said Ksh900 of the savings allocation will be invested in a Money Market Fund (MMF), while Ksh2,100 is directed to a locked savings account.

📰 Source: Kenyans.co.ke