KENYA JOBS AND ECONOMIC TRANSFORMATION (KJET)

The co-investment matching grant is a partnership between KJET and your cluster to invest together in your business. This means KJET will contribute money towards the purchase of equipment or machinery that your cluster needs, but your cluster must also contribute their own money.

The grant is meant to help clusters buy productive assets such as:

• Machinery and equipment needed in your business operations
• Installation and set-up services for that equipment

The grant will NOT pay for construction works, land, vehicles (except with special justification), or day-to-day operating expenses.

To be eligible to apply, your cluster MUST meet ALL of the following conditions:

1. Your cluster has completed the BDS classroom training and mentorship programme under Cohort 1.
2. Your cluster can raise and contribute 50% of the total cost of the equipment in CASH (no in-kind contributions are accepted).

If your cluster meets all conditions above, you are encouraged to apply.

There are two categories under this call. The key difference is the size of investment your cluster needs. Use the table below as a quick reference:

Both categories follow the same co-investment principle: KJET contributes its share, and your cluster contributes an equal amount in cash. The main difference is the grant size, and the documentation requirements that come with larger investments.

Under Category 1, KJET will contribute up to Kes. 5 Million towards the cost of your equipment. Since your cluster must match KJET's contribution in cash (50/50), the maximum total project size under this category is Kes. 10 Million.

Example: Equipment costs Kes. 6 Million. KJET contributes Kes. 3 Million. Your cluster contributes Kes. 3 Million in cash.

Under Category 2, KJET will contribute between Kes. 5 Million and Kes. 32 Million. Since the 50/50 co-investment principle applies, the total project size under this category ranges from Kes. 10 Million to Kes. 64 Million.

Example: Equipment costs Kes. 20 Million. KJET contributes Kes. 10 Million. Your cluster contributes Kes. 10 Million in cash.

The main deciding factor is the size of investment your cluster genuinely needs:

• If the total cost of the equipment you need is Kes. 10 Million or less, apply under Category 1 (Growth Stage).
• If the total cost is between Kes. 10 Million and Kes. 64 Million, apply under Category 2 (Transformational Stage).

Choose the category that reflects what your cluster actually needs, not simply the highest amount available. Applying for more than your cluster can genuinely use will weaken your application.

You should apply under the category that matches the actual scale of the investment you need. If your genuine equipment needs fall within the Category 1 range, applying under Category 2 is not appropriate and may disadvantage your application. The assessment process considers whether the investment size is justified by your business plan.

For Category 1, you must submit:

• A general business plan for your cluster which is mandatory.
• Financial statements or financial records showing your cluster's financial history, mandatory.
• A signed buyer agreement (a commitment from a buyer for your products or services). This is strongly encouraged and will strengthen your application, but not strictly mandatory.
• An equipment-specific financial model. This is strongly encouraged but not strictly mandatory.

Because the amounts are larger, Category 2 has stricter requirements. You MUST submit all of the following:

• A business plan demonstrating a longer operational history — mandatory
• Financial statements covering a longer period — mandatory
• A signed buyer agreement — MANDATORY. Without this, your application will not be considered.
• Fully developed, equipment-specific financial models — MANDATORY.

A signed buyer agreement (sometimes called an off-taker agreement) is a formal written agreement between your cluster and a buyer who commits to purchasing your products or services. It serves as evidence that there is confirmed demand for what your cluster produces. For Category 2, because the grant amounts are larger, the project requires this as proof that the investment is commercially viable.

An equipment-specific financial model is a document that shows, in numbers, how the equipment you plan to buy will generate revenue and cover its costs over time. It should include:

• How much you expect to produce or sell using the equipment.
• What revenues you expect to earn.
• What costs the equipment will bring (maintenance, power, etc.).
• How long it will take for the investment to pay back.

Your BDS facilitator can help you develop this if you do not already have one.

No. Each cluster may only submit ONE application per round. You must choose the category that best fits your cluster's needs and submit a single application accordingly.

The co-investment contribution is the amount of money your cluster must contribute from its own funds towards the cost of the equipment you want to buy. It is required because this programme is designed as a co-investment: both KJET and your cluster invest together. This ensures that clusters are genuinely committed to the investment.

Your cluster must contribute at least 50% of the total project cost. This means your cluster's contribution must be equal to or more than the grant amount KJET is contributing. Examples:

• Total equipment cost: Kes. 4 Million → Your cluster contributes at least Kes. 2 Million; KJET contributes up to Kes. 2 Million.
• Total equipment cost: Kes. 10 Million → Your cluster contributes at least Kes. 5 Million; KJET contributes up to Kes. 5 Million.
• Total equipment cost: Kes. 30 Million → Your cluster contributes at least Kes. 15 Million; KJET contributes up to Kes. 15 Million.

No. The contribution must be in cash only. In-kind contributions such as existing equipment, land, labour, or other assets are NOT accepted. Your cluster must be able to demonstrate that you have actual cash funds available.

You do not need to deposit the cash before applying, but you must be able to demonstrate that your cluster has or can access the matching funds. The cash contribution will be formally verified by the Programme Implementation Team (PIT) before the grant is disbursed. If you cannot show the matching funds at that stage, the grant will not be released.

The programme requires a cash contribution. Whether that cash comes from your cluster's savings or from a loan is a matter for your cluster to decide. What matters is that you are able to deposit the required cash amount when required.

The grant can pay for productive equipment and machinery that your business needs, as well as services directly related to getting that equipment set up — such as installation costs. The equipment must be clearly linked to your cluster's business plan.

• Construction or building works (except in exceptional circumstances with special approval).
• Motor vehicles — these require a strong special justification and are not routinely approved.
• Goods meant for resale.
• Day-to-day running costs such as salaries, rent, or utilities.
• Working capital or cash reserves for the business.

Motor vehicles are not routinely approved. The application form includes a mandatory section requiring special justification for any vehicle purchase. The decision will be made on a case-by-case basis. If a vehicle is genuinely necessary for the productive activity of your cluster, make a clear and detailed case in your application.

No. The grant is specifically for productive assets i.e. equipment and machinery, not for stock or goods intended for resale. The aim is to improve your cluster's production capacity, not to fund inventory.

No. The co-investment grant is made to clusters, not to individual businesses. Your entire cluster must apply together as a unit, with a business plan and investment proposal that reflects the collective needs of all cluster members.

Applications must be submitted through the KJET online portal. To apply:

• Visit: https://kjet.msea.go.ke/coinvestment/application
• Complete all sections of the application form carefully. Incomplete applications will not be considered.
• Attach all required documents as per your chosen grant category.
• Submit your completed application package on or before the deadline.

Applications submitted after the deadline will NOT be accepted. If you need help completing the form, please contact your MSEA officer.

Contact MSEA

Phone: +254 770 666 000

Email: kjetenquiries@msea.go.ke / sikika.kjet@msea.go.ke