Don't know about Kentucky, but in Missouri recruiters initially were only supposed to enlist free blacks and those whose masters were considered disloyal under the Second Confiscation Act. On Nov. 14, 1863 new orders stipulated that "all able-bodied colored men, whether free or slaves, will be received into the service" and that "all persons enlisted into the service shall forever thereafter be free." Loyal owners would be compensated $300 for each slave recruited when they filed an oath of allegiance in their own behalf and a deed of manumission for the enlisted slave. See Louis B. Gerteis, "Civil War St. Louis," pp. 282-283 (University Press of Kansas 2001) and John W. Blassingame, "The Recruitment of Negro Troops in Missouri During the Civil War" pp. 326-338 (Missouri Historical Review, Vol. LVIII, No. 3, April 1964).