The youth forms a large proportion of the Kenyan population. Though it is supposed to be the most productive, majority are unemployed. The main objective of the study was to establish the challenges facing youth enterprises in Nyeri County. The specific objectives were: to establish the effect of inaccessibility of capital on the performance of youth enterprises and to establish the effect of lack of entrepreneurial knowledge and skills on the performance of youth enterprises in Nyeri County. The study adopted simple random sampling to select 35 respondents. Descriptive research design was adopted and primary data was collected using structure questionnaires. Data collected was coded using a predetermined coding scheme and analyzed both qualitatively and quantitatively. Microsoft Office Excel was used. Quantitative analysis was done using descriptive statistics i.e. frequency counts, percentages, tables and graphs to describe distributions, per-charts to show differences in frequencies and bar charts to display nominal or ordinal data. The data was presented using pie charts, graphs, and tables as was found appropriate for each set of data. The study findings indicated that capital inaccessibility and lack of entrepreneurial knowledge and skills are obstacles towards the performance of youth enterprises. The study recommended for cheaper loans and entrepreneurial training of the youth before engaging in entrepreneurial activities.