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Kenya Jobs and Economic Transformation (KJET) FAQs

Kenya Jobs and Economic Transformation (KJET) is a flagship, 5-year initiative by the Government of Kenya funded by the World Bank (2024-2029) whose project development objective is 'To increase private sector investments, access to markets and sustainable finance to create and improve jobs'. The project targets to create jobs and improve productivity of select MSME clusters based on priority value chains envisioned under the Bottom-up Economic Transformation Agenda.

The project supports the Bottom-Up Economic Transformation Agenda (BETA) by strengthening local enterprises to create and improve jobs, scaling up green MSME financing and enhance market access for MSMEs for economic transformation.

  1. Increase private sector investment
  2. Competitive cluster development for MSMEs
  3. Improve market access for MSMEs
  4. Provide sustainable finance
  5. Scaling up green financing and strengthening climatic Resilience for SMEs
  6. Create and enhance quality jobs

KJET targets value chains with high potential to create jobs, including:

  1. Edible oils
  2. Building & construction materials
  3. Textiles and apparel
  4. Tea and coffee
  5. Dairy
  6. Leather
  7. Blue economy (e.g., fishing) 

 The following priority value chains will be piloted:

  1. Dairy
  2. Textiles
  3. Edible Oils
  4. Construction Materials

The project is jointly implemented by:

  1. The Project is implemented by two Ministries: Ministry of Cooperatives, Micro, Small and Medium Enterprises Development (MCMSME) and the Ministry of Investments, Trade and Industry (MITI). Two dedicated Project Implementation Units (PIU)—one in each Ministry—is responsible for day-to-day management of the project. The State Department for Micro, Small and Medium Enterprises (SDMSME) under MCMSME coordinates Component 2 and provides oversight for the Micro and Small Enterprises Authority (MSEA) to implement project activities. It is also the anchor PIU in charge of overall reporting, missions, operational and fiduciary planning.
  2. MSEA, KENInvest, and KDC – Implementing agencies for specific components
  1. MCMSMEThe State Department for Micro, Small and Medium Enterprises (SDMSME) under MCMSME coordinates Component 2 and provides oversight for the Micro and Small Enterprises Authority (MSEA) to implement project activities. It is also the anchor PIU in charge of overall reporting, missions, operational and fiduciary planning.
  2. MITI - implements Component 1; Strengthening Business and Investment Enabling Reforms through its agency KenInvest.  Component 3: Scaling up Green Financing and Strengthening Climatic Resilience for SMEs through the Kenya Development          Corporation (KDC)
  3. MSEA -  The Micro and Small Enterprises Authority (MSEA) is implementing component 2 of the project that aims to enhance cluster competitiveness. Under this Component, MSME clusters will receive technical support through both general and value chain-specific Business Development services (BDS) training and co -Investment viable MSME clusters to acquire productive assets that enhance their operations and market reach.

 

At least 45,000 Kenyans, including 6,800 women, are expected to directly benefit from jobs created through: 

  1. Small and medium-sized businesses (MSMEs)
  2. Women and youth entrepreneurs
  3. Business clusters and cooperatives in the target value chains 

Registered Cooperatives, Associations, or cluster-based entities

A cluster is a group of Micro, Small and Medium Enterprises (MSEs) that are formally organized as a Cooperative or Association or a cluster-based entity working collaboratively within the same value chain or production ecosystem.

Selected clusters will benefit from tailored Business Development Services (BDS) training. In select cases, beneficiaries may also receive co-investment support to acquire productive assets that enhance their operations and market reach.

Your MSME cluster must meet ALL the following criteria to apply:

✔️ Registration

  • Be a registered Cooperative, Association, or cluster-based entity

✔️ Value Chain Focus

  • Operate in one of the following priority value chains:
  1. Dairy
  2. Textiles
  3. Edible Oils
  4. Construction Materials

💡 Clusters in other sectors may be considered under exceptional circumstances, depending on their alignment with project goals and potential impact.

✔️ Operational History

  • Be in existence forover 2 years

✔️ Business Activities

  • Be actively engaged in value addition
  • Have products currently in the market

 

🔍 Important to Note

Submission of an application does not guarantee selection. All applications will undergo a rigorous review and verification to confirm eligibility and operational capacity. Only genuine, operational clusters aligned with the project objectives will be considered for support.

While the focus is on Dairy, Textiles, Edible Oils, and Construction, high-potential groups outside these sectors may be considered in exceptional cases.

A call for applications has been sent out for eligible cluster beneficiaries with all the requirements listed out for them to express interest. Once the application period closes, evaluations will be done to select qualified clusters.

No. The support is primarily in the form of co-investment, not a loan. However, selected beneficiaries will enter into contracts outlining mutual commitments, including potential profit-sharing or phased buy-out options.

No. The support is primarily in the form of co-investment, not a loan. However, selected beneficiaries will enter into contracts outlining mutual commitments, including potential profit-sharing or phased buy-out options.

Co-investment means that both the project and the MSME cluster are jointly contributing toward acquiring productive assets. The cluster contributes 30%, and the project invests the remaining 70%.

  1. TA for county and constituency operationalization of national cluster
  2. Access to specialized and general business development services through clusters
  3. Unified business registration and licensing
  4. Market linkages with buyers
  5. Access to green and affordable financing
  6. Support to meet product standards and improve competitiveness

KJET will be rolled out in all 47 counties of Kenya.

Details will be available through:

  1. Official KJET/ State Department of MSME & SDIP websites
  2. Partner financial institutions
  3. County MSEA offices
  4. Public announcements and outreach events

MSMEs will be chosen based on:

  1. Targeted clusters and cooperatives 
  2. Growth potential
  3. Inclusion of youth and women
  4. Readiness to meet market demands and standards

Training will focus on:

  1. Business development services – general and value chain specific 
  2. Financial literacy
  3. Product quality and safety standards
  4. Use of green and digital technologies

 

The project supports:

  1. Simplification of the business environment by – streamlining the regulatory framework
  2. Improved land access processes
  3. Digital platforms for business services
  4. Better coordination between national and county governments

No. The support is primarily in the form of co-investment, not a loan. However, selected beneficiaries will enter contracts outlining mutual commitments, including potential profit-sharing or phased buy-out options.

No. This opportunity is only open to Cooperatives, Associations or other cluster-based entities.

If eligible, your cluster will be contacted for further assessment. You may be invited for additional interviews or site visits. Successful applicants will then begin BDS training.

Yes. Feedback will be provided, and clusters are encouraged to strengthen their capacity and reapply in subsequent cycles.

You can reach the KJET team via:

i. Email: kjet@msme.go.ke

 

 The key risks include:

  1. Pollution of air,water and noise from upgrades in MSME clusters.
  2. Dangers to workers’ health and safety.
  3. Poor handling of waste.
  4. The chance of gender-based violence or leaving out vulnerable groups if these issues aren’t managed properly.

KJET uses a plan called the Environmental and Social Management Framework (ESMF) to:

  1. Check sub-project risks.
  2. Create specific management plans.
  3. Visit sites to monitor progress.
  4. Make sure all activities follow National Environmental Management Authority (NEMA) rules.

Stakeholders take part through

  1. Joining public talks when planning.
  2. Using complaint channels -Grievance Redress Mechanisms (GRMs)
  3. Sharing views on fairness, gender equality, and community issues.

Yes. The project:

  1. Finds and includes all relevant groups.
  2. Makes sure everyone gets fair benefits.
  3. Checks that women, youth, and vulnerable groups join in.
  4. Adds plans to support gender equality and participation.

KJET promotes:

  1. Supports green projects.
  2. Encourages energy-saving and clean technologies for MSMEs.
  3. Training on climate-smart ways and using resources wisely
  1. (Gender Based Violence) GBV Action Plans are included in Environmental and Social Management Framework (ESMPs)
  2. Contractors and implementing partners get trained on rules.
  3. Safe ways to report are set up
  4. Survivors are helped with support services.