MESPT-CREDIT-PRQ03585-2024 – CONSULTANCY FOR ASSESSMENT OF MESPT FINANCIAL INCLUSION TO SMALL AND MEDIUM ENTERPRISES (SMEs) At Micro Enterprises Support Programme Trust

TERMS OF REFERENCE

ASSESSMENT OF MESPT FINANCIAL INCLUSION TO SMALL AND MEDIUM ENTERPRISES (SMEs)

(ONLY FOR KENYAN NATIONAL INDIVIDUAL CONSULTANTS)

Bids submitted by firms will be rejected.

1. INTRODUCTION

The Micro Enterprises Support Program Trust (MESPT) is a cornerstone of economic empowerment in Kenya, boasting over two decades of dedication to supporting micro-enterprises. Established in 2002, MESPTs overall objective is to promote economic growth, employment creation and poverty alleviation through agri-enterprise development. Through its vision of building a more Prosperous Society, MESPT facilitates increased commercialization, decent employment, and green transformation within Agricultural value chains. MESPT’s integrated approach includes fostering enterprise development through tailored support services and access to finance, promoting financial inclusion, facilitating market access, providing capacity-building initiatives, advocating for sustainable practices, and fostering partnerships for greater impact. By empowering agri-entrepreneurs, enhancing market opportunities, and promoting sustainable growth, MESPT stands as a beacon of positive change in Kenya’s economic landscape.

MESPT key thematic focus includes:

1. Agri-enterprise development and access to markets
2. Access to finance and financial inclusion
3. Agricultural productivity and food safety
4. Green transformation
5. Gender equity and youth empowerment (40:30% representations respectively in all programmes)
6. RATIONALE

This assignment focuses on all the five thematic areas. MESPT has adopted the principles of sustainable finance in its delivery of its mandate. MESPT partnership with SMEs is geared towards enhancing

1. Financial access to would be excluded enterprises due to capacity, business age, business model and structure, lack of collateral, business revenues and volumes and venturing to new line of business or any form of exclusion.
2. Opportunity for job creation among youth.
3. Market expansion for both SMEs and smallholder farmers, thus increased volumes and incomes.
4. Adoption of climate smart technologies, investments and practices.
5. Outreach to small holder farmers.

Since January 2021, MESPT has funded 9 MSMEs and one farmer Co-operative Society at an aggregate disbursement of Kes. 164,344,000 (Read Kenya Shillings: One Hundred and Sixty-Four Million Three Hundred and Forty Four Thousands Only). This investment, in aggregated was expected to result to:

With the above investment, MESPT wishes to assess its contribution towards SME growth and productivity as well the influence the investment has had in job creation and market expansion.

OBJECTIVES OF THE ASSIGNMENT

The objective of this consultancy is to assess the effect MESPT debt has had in influencing key social and economic results at SME and small holder farmer levels as per the agreed results in the contracting document (Offer letter). The contracting documents will be shared to the successful bidder.

SPECIFIC OBJECTIVES

The specific objectives of the consultancy are to:

1. Validation of the nature of business of the identified SMEs.
2. Validation of approved and disbursed loan amounts to identified SMEs.
3. Review of the contracting document (offer Letter) to validated agreed results for each identified SME.
4. Establish the baseline position of each result for identified SME and the achievement level to date.
5. Establish any challenges or barriers that could have inhibited achievement of the results and proposed mitigation to address the challenges and the barriers.
6. Establish what the SMEs have done to manage the barriers and the challenges.
7. Establish the level of debt utilization from MESPT and its contribution to the current enterprise position.
8. Establish any gaps that were unforeseen and require further support either by way of technical support or financial debt with justification.
9. Establish whether the financing from MESPT was aligned to any of the four thematic focus and how has it contributed to harnessing the thematic focus areas.
10. Establish any additionality of financing from other sources influenced by MESPT partnership with SME.
11. Make recommendations on future engagements and partnership between MESPT and SMEs.
12. Clearly establish and document lessons learnt from MESPT partnership and have a case study.
13. SCOPE OF WORKS

Working closely with MESPT Credit and the Business Development Manager, the consultant will be required to engage the management and technical teams of SMEs and the farmer co-operative and sample some of their partnering farmers for comprehensive feedback. The consultant shall be expected to undertake the following:

1. Hold inception meeting with MESPT Credit and Business Development Manager and his team for fine tuning the expectations and work plan and sign non-disclosure agreement.
2. Desk review of MESPT contracting document-offer letter and loan agreements for the identified clients and draw key expected results. This shall be done within the MESPT offices, and no copies shall be taken in compliance to MESPT data protection policy.
3. Develop and administer assessment templates upon approval by MESPT M&E Manager.
4. Undertake both online and onsite interviews with the business owners and farmers (where necessary)
5. Prepare consolidated report with specific chapters per client covering approach and methodology; findings (successes, challenges), mitigation; and recommendations.
6. Present the report to MESPT Management and the Board
7. METHODOLOGY

It is recommended that for maximum value generation for this assignment, the consultant will adopt a participatory approach that include close collaboration with MESPT and SMEs. The consultant will be expected to develop a detailed work schedule that will ensure maximum utility of time and other resources and use proactive engagement methods to generate necessary information from the target stakeholders. The consultant will be expected to combine both online and physical engagement methods to maximize on time. MESPT shall provide transport to 8 sites that will be subject for this assignment as tabulated below:

1. Nakuru County- 1 client
2. Machakos County-3 clients
3. Kiambu County- 1 client
4. Bungoma County-1 client
5. TransNzoia County-1client
6. Kilifi County-1 client
7. KEY DELIVERABLES

Milestone 1:

Inception report highlighting harmonized understanding of the assignment in respect to objectives and expected output, agreed work plan with MESPT, schedule of engagements with SMEs, logistical support, list of documents for desk review (from both MESPT), introductory letters, and commencement timelines for the field engagements and the officer incharge.

Milestone 2:

1. Desk review of MESPT contracting document for the loans with SMEs.
2. Development of assessment tools for approval by MESPT M&E Manager.
3. List of documentation required from the SMEs
4. Report on desk review and assessment tools

Milestone 3

1. Kickoff of the assessment through administering assessment tool.
2. Hold online and physical meetings with SMEs and Farmer co-ops.
3. Draft 1 report on the assessment presented to MESPT Management.
4. Presentation of final consolidated report to MESPT Management including case study.
5. ASSIGNMENT TIMELINES

The assignment will commence immediately after signing the contract with MESPT and will be for a period of 20 working days covering 7 Small and Medium Enterprises and 1 Farmer Co-operative Society Ltd in 6 Counties.

1. CONSULTANT REQUIREMENTS
2. Master’s degree in relevant field- (Agricultural Economics, Business Management, Finance, Economics, Accounting, Statistics, Mathematics, Sustainable Business).
3. In-depth knowledge and experience in Agri-enterprise development, Agri value chain finance, Climate/Green finance, Development finance, financial inclusion, Enterprise development and/or Agricultural Value Chain Development.
4. Demonstrable experience in undertaking surveys and assessments within the agricultural sector including developing tools for data collection.
5. Have a at least 5 years’ experience in enterprise development and implementing sustainable finance in Kenya.
6. INSTITUTIONAL ARRANGEMENT

The Consultant will work under the direct supervision of the Credit & Business Development Manager to adapt and deliver the consultancy appropriately to meet MESPT expectations. During his/her assignment, the consultant will be provided with all necessary information and logistical support for field engagements and office space to undertake online interviews and engagements.

1. DOCUMENTATION REQUIREMENTS
2. Covering letter explaining how your experience addresses the requirements of the TOR.
3. CV of consultant involved in the exercise.
4. Copies of Kenya Revenue Authority Pin Certificate and National Identification Number,
5. Copy of KRA Tax compliance Certificate
6. 3 references of relevant past works including scope of work, consultant’s role and contact for the last 5 years
7. Provide detailed proposal with a detailed Work plan demonstrating the number of man-days to be employed and budget for this work.

How to apply

Download the requirements by clicking on the following link:

Link to download tender documents: MESPT-CREDIT-PRQ03585-2024 – ASSESSMENT OF MESPT FINANCIAL INCLUSION TO SMALL AND MEDIUM ENTERPRISES (SMEs)

Any clarifications should be sent to procurement@mespt.org by 9th October 2024.

Deadline for submission is 15th October 2024 1200noon.

Responses to clarifications will be posted on the above link for all bidders to see. Bidders are encouraged to click on the link from time to time to check on any clarifications/responses posted.

CONDITIONS

1. MESPT reserves the right to accept or reject any proposal.
2. Any canvassing will lead to automatic cancellation of the submitted proposal.