EXPLAINER: Why Some NYOTA Beneficiaries Received Less Payments
The Ministry of Cooperatives has moved to explain why some NYOTA beneficiaries received only Ksh19,000 during the second tranche of the disbursement instead of the Ksh 22,000 expected among all beneficiaries.
Speaking during an interview on NTV on Saturday, July 11, Principal Secretary for Micro, Small and Medium Enterprises Development, Susan Mang’eni, said beneficiaries who received less money in their accounts had withdrawn part or all of their mandatory savings.
Mang’eni explained that the deductions were linked to the programme’s savings component, which requires beneficiaries to set aside part of their grant to build long-term financial resilience.
“There were questions yesterday, ‘Why did I receive 19 and not 22,000? The reason is that they withdrew all their savings,” Mang’eni stated.
“The project is not yet completed, so you are supposed to lock down.”
Her explanation comes amid complaints by some of the beneficiaries who reported receiving only Ksh19,000 while their counterparts were receiving Ksh 22,000.
Under NYOTA, beneficiaries receiving the first tranche of Ksh25,000 are required to save Ksh3,000, with 30 per cent allocated to short-term savings and 70 per cent to long-term savings through the National Social Security Fund’s Haba Haba savings scheme.
This leaves beneficiaries with Ksh22,000 coming directly to their mobile money account.
However, the savings can be withdrawn, meaning those who received smaller amounts had already withdrawn their savings.
The programme also includes a government matching grant at a ratio of two-to-one on eligible savings, designed to encourage participants to build a financial cushion for their businesses.
According to the PS, beneficiaries who withdrew their savings before the programme ended had those amounts netted off from their second disbursement, resulting in lower payments.
“So we were netted off in the second tranche because the project has provided an amount that will enable NSSF through Haba Haba,” the PS stated.
ALSO READ:
- EXPLAINER: Why Some NYOTA Beneficiaries Received Less Payments
- 3 Locals, ONE Bandit Killed In KDF, GSU Shootout Against Bandits
- DCP Truck Torched, Driver Allegedly Abducted Ahead Of Ol Kalou Campaign
- South Africa’s Football Star Dies Aged 25 Days After Historic World Cup Campaign
- AUTOPSY: KMTC Student Died From Suffocation, Internal Injuries
“If you save, let’s say Ksh3,000, after now the end of the project, you start saving for the long term, you also receive a matching up grant at the ratio of 2 to 1.”
Before adding, “We know that if you’re doing business, a business is likely to be exposed to a number of shocks.”
“Savings were put into the project to provide a de-risking mechanism so that when your business goes down, you can go back to your savings to help you.”
The ministry further explains that beneficiaries were informed in advance that early withdrawals would affect the amount they would receive in the second payment.
“We sent them messages and told them we can see that you withdrew all your savings, so you will receive less,” Mang’eni said.
This comes amid claims that the beneficiaries received the Ksh19,000 without prior notification from the government.
EXPLAINER: Why Some NYOTA Beneficiaries Received Less Payments
