Kenya Jobs and Economic Transformation (KJET)

The Kenya Jobs and Economic Transformation (KJET) Project is a strategic five-year national initiative designed to increase private sector investments, expand access to markets, and scale up sustainable finance across Kenya. Driven by a comprehensive set of business, investment, and cluster-competitiveness reforms, KJET targets a profound socioeconomic footprint: creating and improving jobs to directly benefit 40,000 to 50,000 Kenyans, including a targeted minimum of 6,800 women.

While the project spans cross-ministerial efforts, the Kenya Development Corporation (KDC) under the Ministry of Investments, Trade and Industry (MITI) State Department for Investment Promotion serves as the primary implementing agency for Component 3: Scaling up Green Financing and Strengthening Climatic Resilience for SMEs, backed by a total allocation of Euro 42,210,000.

OUR ROLE: COMPONENT 3 ARCHITECTURE

Under Component 3, KDC utilizes its position as Kenya’s premier Development Finance Institution (DFI) to engineer and deploy two distinct, high-impact financing instruments intended to transform the landscape for green MSME’s:

Subcomponent 3.1: Scaling up Green SME Financing (Euro 39,400,000)

KDC will anchor the establishment of a brand-new, pioneering Green Investment Fund (GIF). Designed as a 15-year fund structured as a Kenyan Limited Liability Partnership (LLP) with an accompanying Feeder Fund, the GIF injects initial risk-adjusted, long-term, and patient capital into eligible green MSME’s.

• Target Funding & Scale: Total target capitalization of US$160 million, with a planned first close at US$70–80 million.
• Capital Stack Structure: Junior Equity anchored by the Government of Kenya (GoK) and KDC (US$40 million), designed to de-risk and crowd-in Senior Equity from institutional investors.
• Investment Profile: Direct equity and quasi-equity instruments targeting Early Growth Stage companies with ticket sizes ranging between US$2 million and US$6 million.

Subcomponent 3.2: Strengthening MSME Climatic Resilience (Euro 2,810,000)

KDC will pioneer and deploy a Climate Disaster Credit Facility. This creates a dedicated, contingent credit option designed to protect MSME’s from volatile climate shocks. Financing is offered to eligible beneficiaries and is explicitly triggered by external, verified climatic disaster events, providing emergency capital buffers when businesses need them most.

Target Sectors & Strategic Focus

Equity investments from the GIF and safety-net options from the Climate Disaster Credit Facility are deployed to help firms adopt green technologies, expand productive capacities, increase revenues, and stimulate backward linkages to smaller MSME’s. Core eligible investment fields include:

• Cleaner Energy: Energy and material efficiency solutions.
• Green Transport: Electric vehicles and sustainable e-mobility infrastructure.
• Environmental Resources: Sustainable agriculture and waste management systems.
• Building Efficiency: Green architecture and resource-optimized industrial facilities.

Strategic Partnerships

The implementation of KJET Component 3 utilizes a closely integrated inter-agency framework:

• The World Bank Group (International Development Partner / Credit Financier)
• Ministry of Investments, Trade and Industry (MITI) – State Department for Investment Promotion
• Kenya Development Corporation (KDC) – Lead Implementing Agency for Component 3 (GIF & Climate Disaster Credit Facility)

HOW TO ENGAGE / INVEST

Are you an institutional investor looking to commit senior equity to a high-signal green pipeline, or a growth-stage green enterprise looking to benefit from the Green Investment Fund or Climate Disaster Credit Facility?

• Institutional Investors & Fund Inquiries: Connect directly with the KDC at info@kdc.go.ke 
• MSME Capital Applications: Submit a preliminary proposal or review eligibility criteria at info@kdc.go.ke  

            More info: www.kjet.go.ke