Youth Enterprise Grants (YEG) for the Informal Economy

The Youth Enterprise Grants (YEG) pilot project in Mathare, Nairobi, provided approximately $1,200 in grants and smartphones to youth aged 18-35. Findings indicate a significant shift from casual labour to self-employment (37% to 64%) and marked improvements in financial status, with over 75% of recipients reporting income increases. While smartphones proved essential for market access and business skills via social media, specific money management apps like Touch Doh saw low adoption. Mobile money remains the primary tool for financial management, with a strong preference for savings mechanisms that limit immediate liquidity.

• The YEG pilot project provides enterprise grants totaling approximately $1,200 and a smartphone to young people aged 18-35 living in Mathare, a low-income settlement in Nairobi. The grants are distributed in two formats: half the beneficiaries receive three lump sum payments within three to four months, while the other half receive monthly payments of approximately $50 for two years.
• The project has led to a significant shift in employment patterns among recipients, with the proportion of those describing themselves as self-employed increasing from 37% to 64%. This indicates a movement away from casual labour toward entrepreneurial activity.
• Recipients report substantial financial improvements, with over 75% stating their income has increased beyond the value of the transfer. Additionally, the proportion of youth reporting they are better able to meet their needs rose from 29% to 80%, and the average size of loans decreased by 30%.
• Smartphones are critical for market knowledge and business growth, with recipients using social media (such as Instagram and Facebook) to find trends, market goods, and reach clients. However, the cost of data and lack of wifi are noted as constraints to accessing streamed video content.
• While the Touch Doh money management app was provided, it was not widely used because users wanted actual financial functionality—such as the ability to lock money or link to M-Pesa—rather than just a digital record of expenses.
• Mobile money is the dominant tool for managing and saving money, with 99% of recipients having used it to send or receive cash. There is a strong preference for 'illiquidity' mechanisms that prevent easy spending, making M-Pesa's M-Shwari service and informal saving groups popular, especially among women.

APA

FSD Africa (n.d.). Youth Enterprise Grants (YEG) for the Informal Economy. https://fsdafrica.org/wp-content/uploads/2025/05/YEG-Brochure-01.04.20.pdf

Chicago

FSD Africa. Youth Enterprise Grants (YEG) for the Informal Economy. n.d. https://fsdafrica.org/wp-content/uploads/2025/05/YEG-Brochure-01.04.20.pdf.

Wikipedia

{{cite report |author=FSD Africa |title=Youth Enterprise Grants (YEG) for the Informal Economy |url=https://fsdafrica.org/wp-content/uploads/2025/05/YEG-Brochure-01.04.20.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fsdafricandyouth, author = {{FSD Africa}}, title = {{Youth Enterprise Grants (YEG) for the Informal Economy}}, institution = {FSD Africa}, url = {https://fsdafrica.org/wp-content/uploads/2025/05/YEG-Brochure-01.04.20.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }