Call for Proposals
National Consultant: Description of registration and compliance procedures for small economic units and their workers in Kenya
1. Context
The ILO Recommendation on the Transition from the Informal to the Formal Economy, 2015 (No. 204) calls on member States to design coherent and integrated strategies to facilitate the transition from the informal to the formal economy and recognizes the need for tailored approaches to address the diversity of situations and the specificity of national circumstances. Supporting enterprise formalization as a means of creating decent work opportunities for workers and economic units in the informal economy is a prominent pillar of the policy recommendations formulated in Recommendation 204.
In line with this, and as part of an integrated strategy, the ILO aims to support Kenya to roll out a training module on enterprise and job formalization. This module, entitled “Formalize Your Business”, aims to build the capacity of micro and small informal enterprises through Employers and Business Member Organisations (EBMOs), and both Governmental and non-Governmental Business Support Institutions (BSIs). It consists of two parts: the first part deals with generalities around the topic of formalization (e.g., what is enterprise formalization, why is it important); the second part describes procedures for registering an economic unit in a specific country and for complying with national requirements in terms of:
- Enterprise and worker registration (Unit 1)
- Bookkeeping (Unit 2)
- Taxation (Unit 3)
- Social security (Unit 4)
- Decent work and labour law (Unit 5)
- Sectoral and cross-sectoral requirements (Unit 6)
Within this framework, the present assignment aims to gather detailed information on registration and compliance procedures for micro and small informal enterprises in Kenya.
2. Objectives and methodology
The objective of this assignment is to identify and describe all registration and compliance procedures for small economic units in Kenya. The ILO will then use the information gathered during this assignment to develop the second part of the training module “Formalize Your Business”.
The assignment will follow a 3-steps methodology, which includes:
- Desk research to gather information on relevant registration and compliance requirements as well as official agencies implicated in different steps of formalization.
- Interviews with the relevant institutions and agencies responsible for the registration and compliance of economic units and their workers, as well as with formalized/formalizing entrepreneurs.
- A national validation workshop, to present the gathered information while also increasing the visibility of the project and further involving stakeholders.
The ILO will provide guidance and technical support and will propose a list of key topics and guiding questions on which information should be collected. The consultant will adapt the list of key topics and questions to the national context and develop a report on formalization and compliance procedures for enterprises and workers in Kenya. This report is only intended to describe registration and compliance procedures for informal economic units, not to pinpoint their gaps or strengths. The report should be concise and easy to use. The information can, therefore, be displayed in tables, lists or other formats, where appropriate. The consultant will also be expected to assist in developing and reviewing the training materials, with a view to ensuring proper understanding and organizing of the collected information.
3. Process and activities
Phase I – Desk research
- Based on guidance provided by the ILO, compile a draft report on enterprise registration and compliance procedures for micro and small enterprises and own-account workers. The report should cover all regulations and procedures that apply to registered enterprises and workers in Kenya in terms of bookkeeping, taxation, social security, labour laws and sectoral regulations, at both national and local levels.
- The report should also include information on the institutions that support business formalization, the support services available, the costs, timeframes and documentation required for each procedure, and useful links. The report can also include some key documents (registration forms, sample contracts, etc.) that can be added as annexes. In addition, the report should include registration options and benefits provided through digital platforms like the Kenya Financial Inclusion programme (Hustler Fund).
- The desk research will be submitted to the ILO for review and approval.
5 days
Phase II – Interviews with the relevant agencies, institutions and entrepreneurs
- On the basis of the draft report revised by the ILO, adapt and finalise the list of key topics and guiding questions (orientation guide) for information collection, and develop a list of relevant institutions and agencies to contact during the information gathering process. The two lists will be submitted to the ILO for review and approval.
1 day
- Conduct interviews with identified institutions, agencies and entrepreneurs in order to:
- Gather missing information on enterprise and worker registration and compliance requirements and procedures.
- Verify, validate and expand the information collected through the desk research.
- Obtain practical advice from formalized and formalizing entrepreneurs for their peers regarding registration and compliance procedures.
- The information gathering process will be supported by the ILO, for example through a letter introducing the consultant and his or her assignment to the relevant agencies.
5 days
- Produce a second version of the draft report, revised and enriched based on the information gathered during the interviews.
2 days
Phase III – National validation workshop
- Preparation for and facilitation of a ½ day national validation workshop in collaboration with the State Department of MSMEs, in order to increase the visibility of ongoing efforts, to widely involve partners in the realisation of the module, and to revise/validate the report based on participants’ comments. The contributions expected of the consultant are as follows:
- Brief presentation of the information gathering process.
- Brief presentation of the draft report and its structure.
- Facilitation of group work on certain sections of the report.
1 day
- Based on comments and modifications obtained during the national workshop, amend and finalise the draft report and submit the final report to the ILO.
1 day
Phase IV – Development of training materials
- Work alongside the ILO training expert to revise FYB training tools (i.e. the learner’s manual) based on existing versions and collected information.
1 day
Total: 16 days
4. Deliverables
- The first deliverable is the draft report on registration and compliance procedures for micro and small enterprises in Kenya, based on initial desk research.
- The second deliverable consists of (1) the final list of key topics and guiding questions for information collection and (2) a list of relevant institutions and agencies to interview.
- The third deliverable is the final report containing exhaustive information on registration and compliance requirements and procedures for small enterprises and workers in Kenya, revised based on comments provided by the ILO and by workshop participants.
- 1st payment of 50% of the total amount upon reception of the 1st and 2nd deliverables, to the satisfaction of the ILO.
Payment calendar
- 2nd payment of 50% of the total amount upon reception of the 3rd deliverable, to the satisfaction of the ILO.
5. Duration
The assignment will take place from 20 September 2024, with an estimated work duration of 16 days.
6. Required profile
- A good understanding of the informal economy in Kenya.
- A sound knowledge of the laws, regulations and procedures for the formalization of micro and small enterprises in Kenya, as well as of the institutions/agencies that support them.
- Proven experience in supporting enterprises in their development and/or formalization.
- Evidence of previous research related to MSMEs and the informal economy.
- A capacity to communicate effectively with the representatives of the institutions/agencies involved in formalization.
- Excellent spoken and written English language skills.
- Excellent ability to synthesise and organise information.
7. Supervision and coordination
The Consultant will work under the overall authority the Director of the ILO Country Office for Uganda, Kenya, Tanzania, Rwanda and Burundi, under the direct supervision the ILO-PROSPECTS Programme Manager in Kenya. The consultant will get technical guidance from ILO Technical Specialists on Informality, and the Kenya PROSPECTS team.
For more information: National consultant – Description of registration and compliance procedures for small economic units and their workers in Kenya | International Labour Organization (ilo.org)
How to apply
Interested candidates are requested to send a brief technical and financial proposal (maximum 5 pages) together with their updated CV by email to nboprocurement@ilo.org through by Sunday 25 August 2024 latest. The email subject should be ‘PROSPECTS informal economy’
