Government Opens KSh20 Million World Bank Fund to Boost Small Businesses in Kenya

The Kenyan government has announced a new funding opportunity aimed at strengthening small businesses involved in value addition across the country.

The programme is part of the Kenya Jobs and Economic Transformation (KJET) Project, a five-year initiative funded by the World Bank and implemented by the Government of Kenya from 2024 to 2029.

The announcement comes shortly after William Ruto hosted the Nairobi County Empowerment Programme at State House, Nairobi, highlighting the government’s focus on job creation and enterprise growth.

What the KJET Funding Is About

The State Department for Youth Affairs and the Creative Economy is calling on micro, small and medium enterprises (MSMEs) organised in clusters to apply for co-investment funding.

Under the programme, eligible clusters can receive support to purchase value-adding machinery, with the government paying up to 70 per cent of the cost. The maximum value of machinery supported per cluster is KSh20 million, meaning beneficiaries only need to raise 30 per cent.

The funding is designed to:

Improve productivity
Expand processing capacity
Increase access to markets
Create sustainable jobs

The application window is time-sensitive, with only 15 days remaining before the deadline.

Who Is Encouraged to Apply

The government is urging widespread sharing of the opportunity among:

Cooperatives
Associations
Self-help groups (SHGs)
Community-based organisations (CBOs)
Cluster-based entities
Limited companies involved in value addition

Priority will be given to clusters operating in key value chains such as:

Building and construction materials
Edible oils
Tea and coffee
Cotton and textiles
Dairy and rice
Leather
Blue economy (fisheries, aquaculture, marine resources)

Other agricultural and industrial value chains may also be considered.

How the Application Process Works

Applicants must first confirm that they meet all eligibility requirements before submitting their applications. Each cluster is allowed only one application, and all required documents must be uploaded clearly and accurately.

Incomplete submissions will be rejected.

Full application details, eligibility criteria, and submission guidelines are available on the official KJET portal.

How Many Businesses and Jobs Will Benefit

Through this programme, the government aims to:

Support up to 1,200 MSMEs
Create around 45,000 jobs
Reach businesses in all 47 counties

Special attention will be given to women, youth, and underserved groups to ensure inclusive economic growth.

How KJET Is Structured

The KJET Project is implemented through four main components:

Business and investment reforms – led by the State Department for Investment Promotion with support from the Kenya Investment Authority
MSME cluster support – implemented by the Micro and Small Enterprises Authority, focusing on business development services (BDS) and co-investment
Green financing and climate resilience – overseen by the Kenya Development Corporation
Project management and monitoring – handled by the State Department for MSME Development

Under the second component alone, 600 clusters will receive machinery support, while 1,200 clusters will benefit from free training.

Selection Process for Clusters

Applications go through a transparent selection process that includes:

Initial screening for eligibility
On-site data verification
Technical scoring based on set criteria
Independent quality checks
Final approval by a selection committee

For the first phase of training support, 94 clusters (two per county) were already selected.

Final Reminder to Interested Groups

Eligible MSME clusters looking to expand, modernise operations, and access new markets are encouraged to apply before the deadline through the official KJET platform.

This initiative presents a rare opportunity for small businesses to scale operations, improve competitiveness, and contribute to Kenya’s economic transformation.