Youth Enterprise Grants (YEG) for the Informal Economy

The Youth Enterprise Grants (YEG) pilot project is a two-year intervention providing approximately $1,200 in grants and a smartphone to over 1,000 youth (aged 18-35) in the Mathare slum of Nairobi, Kenya. The project aims to test whether capital injections and digital access can shift youth from casual labor to sustainable self-employment. Initial findings indicate a significant increase in self-employment, rising from 37% to 64% among recipients, and a marked improvement in financial status, with over 75% reporting income increases beyond the grant value. While smartphones are critical for market knowledge and client acquisition via social media, specialized money management apps like Touch Doh saw limited use. The project also highlights a strong preference for 'illiquidity' in savings to prevent spending, often achieved through informal groups or M-Shwari.

• The YEG pilot has successfully encouraged entrepreneurial behavior, leading to a significant shift in employment types where the proportion of recipients identifying as self-employed rose from 37% to 64%.
• Recipients report substantial financial improvements: more than 75% saw their income increase beyond the grant amount, and the percentage of youth able to meet their needs grew from 29% to 80%.
• The project led to a reduction in debt, with the number of recipients reporting a loan or debt falling from 71% to 39%, and the average loan size decreasing by 30%.
• Smartphones are highly valued for accessing market knowledge, technical skills, and clients via social media, although the cost of data remains a barrier to accessing video content.
• While mobile money usage is nearly universal (99%), there is a strong demand for 'illiquidity' mechanisms to lock away savings, making M-Shwari and informal groups popular choices.
• The Touch Doh money management app was not widely adopted because users wanted actual financial locking mechanisms rather than just a notional record of expenses.

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} }