The overall purpose of USAID's KCDMSD Partnerships and Innovation Fund (PIF) is to catalyse private sector investment in the expansion and strengthening of market systems for dairy and horticulture in Kenya. KCDMSD seeks to strengthen market systems, enabling farmers to intensify and diversify into higher-value crops, value-added activities, and non-farm employment and enterprises in the dairy, feed and fodder, and horticulture value chains.



Deadlines for concept notes: 


  • Deadline 1: June 30, 2019
  • Deadline 2: To be decided 
  • Deadline 3: To be decided



Grants go up to KES 25,000,000 (~USD 250,000) per project (in year 1 of the fund). KCDMSD provides the following types of grants and match funding:


• Fixed amount award grants: payments based on submission of agreed milestones & deliverables.
• Cost reimbursable grants: primarily used for larger interventions. Payments are done after expenditures are made, submitted and then approved by KCDMSD. Reimbursements based on agreed deliverables and review of financial reports.
• In-kind grants: goods and/or services are procured directly by PIF and then provided to the grantee.


Applicants with proposals between KES 2,500,000 and KES 25,000,000 are expected to contribute a cost share of 50%. Cost share can be done through cash contribution or through operational contributions (e.g. office rent equivalent, staff time, transport, office equipment, etc.).


Project focus 

The KCDMSD objectives are:


  1. Build competitive, inclusive and resilient agricultural market systems
  2. Diversify agricultural production and improve productivity
  3. Improved policy environment for market systems development
  4. Integrate youth and women into agricultural market systems
  5. Increased collaborative action and learning for market systems change


The programme focuses on strengthening the following value chains: dairy, fodder/feeds, and horticulture (mango, passion fruit, avocado, banana, pineapple, and sweet potato). Project proposals should aim to create sustainable solutions to existing constraints through:


  • Sustainable Agricultural Market Systems: Facilitating market systems organization & coordination through improved supply chain management; strengthening capacity and profitability of private and farmer-owned agribusinesses sourcing from smallholders; strengthening the capacity of Business Development Services and value chain service providers (incl. micro-enterprises); enhancing trade in domestic, regional and international markets by creating demand in new and sustainable markets.
  • Agricultural Production and Productivity: Facilitating diversification and productivity increases by enhancing farmer access to sustainable sources of information, training, extension, technologies and inputs.


Target counties 

The programme is focused exclusively on Kenya and targets the following counties: Kitui, Makueni, Taita-Taveta, Homa Bay, Migori, Kisii, Kisumu, Siaya, Kakamega, Bungoma, Busia, and Vihiga.


Eligible applicants 

The programme is open for applicants from companies/enterprises (including micro-enterprises or groups of micro-enterprises), associations, cooperatives and cooperative unions. 



Selection follows a two-stage procedure: 


  • Stage one: concept note
  • Stage two: full proposal, subject to PIF's positive evaluation of the concept note


PIF has a rolling selection process, in which concept notes will be evaluated as soon as they are received and may issue full proposal invitation letters early, even before the below submission deadlines.

 Why work with Advance Consulting?

Advance Consulting has successfully developed a number of applications for funding from USAID. Contact Michel Geerligs ( for further information on the KCDMSD programme. Please note that Advance Consulting is not affiliated with either the programme sponsor (USAID) or the granting organization (RTI International).