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This interim report evaluates the Youth Enterprise Grants (YEG) pilot project, which provided cash grants and smartphones to 1,035 youth (aged 18-35) in the Mathare slum of Nairobi. The project tested two payment models: lump sums of ~$1,200 and monthly payments of ~$50. Initial findings indicate that cash transfers are feasible in urban slum environments and effectively encourage entrepreneurial behavior, with a significant shift from casual labor to self-employment. While pre-installed business apps saw low engagement, general internet and social media access via smartphones significantly aided market access and skill acquisition. The report also highlights gender-based differences in spending and saving, and the continued importance of informal saving groups alongside mobile money services.