The 47-year-old Kerr, who presently coaches Stirling University's Lowland League men's side, will take over from Finland-bound Anna Signeul in June.
And Grant believes Kerr can take Scotland to greater success.
"She could take any men's team in Scotland in my opinion, she is that good a coach," Grant told BBC Scotland.
"Anna's done fantastic, Shelley has learned off her and now she can hand it over and Shelley can continue and make the team stronger and better.
"The squad is the strongest it's been and I think Shelley will take them even further than Anna."
Grant, who is sidelined at present with a knee injury, is a former team-mate of Kerr's with Scotland and Hibernian, where the latter was also a coach.
"It's a great appointment," said the Motherwell forward. "I was fortunate enough to play with and be coached by Shelley.
"She's great in the changing room, she's a great personality, one of the best coaches I've ever been under, so it's great for the game.
"She knows all the players personally and as players that makes a massive difference.
"It's really important that we now have a Scottish coach and Shelley deserves it because she came up through the ranks as a player and she is also a great role model because she had a child on the way - Christie Kerr actually plays for my team now at Motherwell."
Kerr became the first-ever female head coach in senior British football when, three years ago, she took charge of Stirling University in the Lowland League, the new feeder league for the Scottish Professional Football League.
"She is just a great role model to have in the Scottish game, she's been involved in the men's game, which a fantastic step for her, and if anyone deserves the role now, it is definitely Shelley," Grant added.
Kerr not only led Stirling University, who currently sit fourth in the league table, to a British Universities Championship final, she also completed a MSc in sports management.
In a university statement, the former Arsenal Ladies manager said: "I have no doubt the academic education I received will be of great benefit in my new role as well as in the future and beyond."
Stirling University director of sport Cathy Gallagher paid tribute to Kerr, who will remain in charge until the end of their season.
"During Shelley's tenure, the University of Stirling has established its position at the top of British university football and the Scottish non-league game," she said.
Scotland boss-in-waiting Shelley Kerr is good enough to coach any men's side in Scotland, according to 104-time capped forward Suzanne Grant.