Kenya Jobs and Economic Transformation (KJET) is 5-year Government of Kenya project funded by the World Bank (2024-2029). The project development objective (PDO) is ‘To increase private sector investments, access to markets and sustainable finance to create and improve jobs’. The project targets to create and improve productivity of select MSME clusters based on priority value chains envisioned under the Bottom-Up Economic Transformation Agenda to benefit at least 45,000 Kenyans, including at least 6,800 women through new or improved job opportunities.

 

Project Structure

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. SDIP is coordinating Components 1 and 3, providing oversight for KenInvest and KDC, respectively, to implement the KJET Project activities.

Through targeted interventions, KJET seeks to empower youth and women, promote innovation, and build resilient enterprises that contribute to Kenya’s economic transformation.

 

Project Components

1.    Strengthening Business and Investment Enabling Reforms.

This component offers a comprehensive set of interventions that are expected to support business and investment enabling reforms in Kenya that will result in streamlined licensing processes; improved investment-related laws, regulations, and strategies; enhanced government capacity for investor outreach and government to business service delivery. It will finance technical assistance and Performance-Based Conditions (PBCs), which will support the design and implementation of well-defined regulatory reforms affecting business entry and operations. This component is implemented by the State Department for Investment Promotion and the Kenya Investment Authority (KenInvest).

2.    Enhancing MSME Cluster Competitiveness.

This component aims to strengthen competitiveness and market access of the MSMEs through provision of Generalized and Value Chain Specific Business Development Services as well as co-investment in viable MSME clusters.

3.    Scaling Up Green Financing and Strengthening Climatic Resilience for SMEs.

This component is meant to mobilize green private capital to support SME’s adoption of green, clean and eco-friendly technologies through setting up an agile, patient financing structure that is able to crowd in private capital, especially for medium businesses. It will also pilot an innovative instrument to support SMEs in managing compound shocks including climatic risks. This component is implemented by the Kenya Development Corporation Ltd (KDC)

4.    Project Management, Monitoring and Evaluation.

This component will strengthen the Monitoring and Evaluation (M&E) systems and capacity of national implementing agencies, and finance project management activities with the aim to build sustainable systems that last beyond the lifetime of this project. The State Department for Micro, Small and Medium Enterprises (MSMEs) Development oversees Project Management, Monitoring and Evaluation.

 

Pilot Value Focus

Cluster must operate in one of the following priority value chains;