The government is set to support thousands of micro and small businesses across the country with non-refundable matching grants of up to Sh5 million through the Kenya Jobs for Economic Transformation programme (KJET).
Deputy President Kithure Kindiki said the programme is ready for launch in the coming weeks, with the first cohort targeting businesses seeking capital investment of Sh5 million and below.
Kindiki said beneficiaries will be required to raise half of the capital, with the government providing the remaining 50 per cent as a matching grant.
“This project will reach many small businesses by supporting them with matching grants. The first beneficiaries are those requiring up to 5 million shillings in capital investment,” Kindiki said.
“The business will raise 50 percent and this project will support them with the other 50 percent in matching grants. It is not a loan; it is not refundable.”
Kindiki spoke on Wednesday at the Official Residence in Karen, Nairobi, where he met Principal Secretaries and heads of government agencies involved in implementing KJET.
He directed the officials to expedite preparations for the rollout of the programme and ensure that deserving businesses benefit from the initiative.
The Deputy President said a larger financing window would be introduced after the first cohort to support businesses requiring higher levels of capital.
“After the first cohort, there will be a bigger window for those in need of more grants of up to 10 million shillings,” he said. Kindiki said KJET would target businesses across all regions, with particular attention to enterprises in the countryside that have not benefited adequately from financial support despite their potential to contribute to economic growth.
“KJET is going to support thousands of businesses across the country; dairy, textile, coffee, tea, rice, leather, blue economy and mining value chains,” he said.
The programme is expected to support enterprises operating across these value chains through the matching grant model as part of the government’s broader economic transformation agenda.
Kindiki said the financing model had been refined to ensure the programme delivers its intended benefits to businesses and households. “We are ready. The work needed has been done. We have taken time to fine tune the model to deliver this support to the people of Kenya,” he said.
He said the government was focused on strengthening micro and small businesses because of their role in supporting incomes and livelihoods. “This government is keen on lifting up as many micro and small businesses, empowering them in order to increase their income and improve the livelihoods of many Kenyans depending on them,” Kindiki said.
The Deputy President directed officials overseeing the programme to ensure that support reaches businesses across the country. He asked them to draw lessons from the recently disbursed NYOTA funds as they prepare to roll out the KJET business support component.
“We will make sure that every part of Kenya is reached. I have directed that, like NYOTA, the business support component which we are about to roll out must reach every ward, every constituency and every county,” he said.
Kindiki also said other components of KJET were being finalised, including support for businesses to acquire common-user equipment for value addition.
He said the initiative would contribute to the country’s industrialisation efforts by helping businesses improve their capacity to add value to products.
“This government is convinced that the best way to transform our country is through sharing of national resources fairly, equitably and reaching out to as many beneficiaries as possible in every part of the country,” Kindiki said.
The government will therefore use KJET to expand financial support to micro and small businesses while seeking to strengthen enterprises operating across key value chains.
The initial matching grants will target investments of up to Sh5 million, with a subsequent window expected to support businesses seeking grants of up to Sh10 million.