Request For Proposal: Consultancy services to develop credit risk management framework in Kakuma-Kalobeyei Area – May 2025

1.0 صندوق تحدي المشاريع الأفريقية

The AECF is a leading development organization that supports innovative enterprises in the agribusiness and renewable energy sectors with the aim of reducing rural poverty, promoting climate-resilient communities, and creating jobs.

We catalyze the private sector by surfacing and commercializing new ideas, business models and technologies designed to increase agricultural productivity, improve farmer incomes, expand clean energy access, reduce greenhouse gas emissions, and improve resilience to the effects of climate change. We finance high-risk businesses that struggle to access commercial funding; we are committed to working in frontier markets, fragile contexts, and high-risk economies where few mainstream financing institutions dare to go.

To date, we have supported over 510 businesses in 26 countries in Sub-Saharan Africa, impacted more than 33 million lives and created over 35,000 direct jobs.

يقع المقر الرئيسي للمنتدى في كينيا وله مكاتب في كوت ديفوار وتنزانيا ونيجيريا وجنوب السودان وبنين والصومال.

2.0 حول صندوق تحدي كاكوما كالوبيي (KKCF)

صندوق تحدي كاكوما كالوبيي هو برنامج مدته خمس سنوات تابع لمؤسسة التمويل الدولية (IFC)، يتم تنفيذه بالتعاون مع صندوق تحدي المشاريع الأفريقية وحكومة مقاطعة توركانا ومفوضية الأمم المتحدة لشؤون اللاجئين. وينبثق برنامج KKCF من بيانات السوق من دراسة "كاكوما كسوق" التي أجرتها مؤسسة التمويل الدولية والتي حددت اقتصاد كاكوما وأكدت أنها سوق ديناميكية ومحتملة. وقد أثار هذا الأمر الكثير من الاهتمام الذي ساهم في وضع تصور صندوق كاكوما للمفوضية وتطوير برنامجه.

KKCF is designed to support private sector investment and unlock the economic potential of refugees and their hosts in Kakuma Kalobeyei refugee hosting area in Turkana West District of Turkana County. KKCF aims to attract private companies and grow the local entrepreneurship potential to create job opportunities, present more consumption choices, and contribute to fair pricing of products and services. KKCF targets all sizes of companies from small to medium-sized family businesses to social enterprises and large firms. For more information, visit https://kkcfke.org/

يطبق صندوق كاكوما-كالوبيي آلية تمويل تنافسية لصرف التمويل من الجهات المانحة لتحفيز الشركات على بدء أو توسيع نطاق عملياتها القائمة في منطقة كاكوما-كالوبيي. وتبدأ العملية بالإعلان عن دعوة لتقديم العروض، ثم يخضع مقدمو الطلبات لعملية اختيار تنافسية تؤدي إلى تحديد الشركات التي تتماشى بشكل أفضل مع ديناميكيات سوق كاكوما-كالوبيي لتحقق بعد ذلك الأثر الاجتماعي والاقتصادي المنشود للمجتمعات المضيفة ومجتمعات اللاجئين مع المساهمة في تنمية مقاطعة توركانا.

With the Kakuma-Kalobeyei area being a marginalized and fragile setting, KKCF supports these companies to manage business limitations prevalent in such challenging environments including limited access to financing, low availability of technically qualified and experienced staff, complex social and cultural conditions, slow and bureaucratic regulatory environment and fragmented, low income and remote markets with poor infrastructure. KKCF support includes provision of concessional capital, technical assistance and policy advocacy to improve the business environment. This collaborative Program focuses on building commercially viable and sustainable businesses that can:

• زيادة الدخل لكل من اللاجئين والمجتمعات المضيفة.
• توفير السلع والخدمات الأساسية.
• خلق فرص العمل وتحفيز النمو الاقتصادي.
• تحسين مستويات المعيشة لسكان مخيم اللاجئين والمجتمعات المحيطة به.
• Promote financial inclusion efforts focused on increasing access to finance for women and youth.

KKCF is currently working with 105 commercially viable and sustainable microenterprises and 19 Small and Medium Enterprises (SMEs) across diverse economic sectors. One of the 19 SMEs is a Sacco Societies Regulatory Authority (SASRA) deposit-taking Savings and Credit Cooperative Society (SACCO). The SACCO has been in operation for a year in Kakuma and is looking to set up a credit management system and processes customized for the Kakuma Market.

3.0 About the Assignment

AECF is seeking the services of a Consulting Firm to support the SACCO in setting up a credit risk management system and processes customized for the Kakuma Market. The assignment will commence with a comprehensive review of its existing credit policy and procedures and loan underwriting capacity to identify gaps, and end with a customized credit policy framework and supporting manuals. The SACCO has a national membership of over 33,000 members, 3,500 of whom have been enrolled from the Kakuma–Kalobeyei area.

3.1 الغرض من المهمة

The purpose of these TORs is to define the scope, responsibilities, expectations, and deliverables of the engagement expected by AECF from the selected Consultant. The successful service provider must demonstrate experience and understanding of the refugee context and the Islamic banking/finance practices.

4.0 Specific duties and responsibilities (the “Services”) of the Consultant

The Consulting Firm will be expected to deliver on the following scope of the assignment:

a. Credit risk management needs assessment

• Conduct a comprehensive review of SACCO’s existing credit management policies and procedures applicable to the Kakuma Branch operations. This will include identifying gaps in knowledge, skills, and practices related to to loan portfolio monitoring
• Review the Kakuma Branch operations with a focus on risk identification, including concentration risk, operational risk, cybersecurity risk, market risk and, credit risk.
• Identify Kakuma Branch’s capacity to employ best practices in loan origination, loan portfolio monitoring and mitigating risk of loan defaults and loan recovery. This will include assessment of the loan origination process, loan underwriting skills, loan approval, disbursement, portfolio management, loan recovery and, compliance.
• Based on the assessment findings, develop a multiday training program for  SACCO staff involved in the entire loan life cycle. The program should enhance SACCO’s staff capacity in adopting best credit management practices across the loan life cycle. Clearly outline the expected outcomes and learning objectives of the training program.

b. Development of a credit risk management framework

• Design a market-specific credit management framework that aligns with Kakuma Branch operational context, particularly the fragile nature of the market it is operating in given the forced displacement setting.
• Incorporate risk mitigants in the credit policies, procedures and processes that help in identification and management of the various risks identified in managing Kakuma Branch’s loan portfolio. This should also include instituting compliance checks that ensure monitoring and adoption of these mitigants.  Design credit scoring models that will guide digitalization of lending in the MSME fragile market context.
• Develop detailed manuals and guidelines for loan origination and credit administration, incorporating industry best practices and compliance requirements including SASRA regulations.
• Establish clear performance metrics to evaluate the effectiveness of the newly developed framework.

c. Capacity building and training delivery

• Prepare training and capacity-building materials (decks, templates, tools) that address the identified gaps and new framework requirements.
• Facilitate training sessions for the SACCO teams, ensuring practical, hands-on learning and the application of new credit management processes.
• Assess the effectiveness of the training through feedback and post-training evaluations.

d. Reporting and insights

• Prepare and submit a comprehensive report outlining insights gained from the assignment, focusing on challenges and strategies specific to credit management in refugees and other fragile market contexts.
• Include actionable recommendations for sustaining improved credit management practices post-training.
• Provide an executive summary that highlights key findings, outcomes, and strategic recommendations.

e. Stakeholder engagement and communication

• Engage with relevant stakeholders, including loan officers and management, throughout the assignment.
• Conduct periodic progress updates and a final presentation of key deliverables to the company’s management team.

f. Evaluation and monitoring

• Develop a monitoring and evaluation plan to track the impact of the implemented credit management framework and training programs. Include measurable KPIs to assess improvements in credit appraisal and loan origination practices.

4.0 Deliverables

The Consulting Firm is expected to deliver the following:

1. An assessment/analysis report for the SACCO’s credit policies and procedures and loan officers’ skills with a gap analysis. This report will include recommendations on how to improve existing credit management policies to address the Kakuma Branch market dynamics.
2. Fit-to-purpose credit risk management tools that include frameworks and manuals for loan origination and administration and recovery customized for the Kakuma-Kalobeyei business environment and financial industry trends. These will also include clear paths to the attainment of competitive advantage and sustainability.
3. A training and capacity-building program and training materials for use by the SACCO for onward refresher training for their teams.
4. Metrics and tools to track and evaluate improvements made in the implementation of the credit management system over time.
5. An insights paper from this assignment highlighting the expected impact of adoption of the enhanced credit management framework for the SACCO.

5.0 Duration of the Assignment

The assignment is expected to be completed in three (3) months from the commencement date.

6.0 إعداد التقارير

The Consultant will report to the Senior Advisory Officer at the AECF and the KKCF Program Manager.

7.0 Proposal Submission

يُرجى من الأفراد أو الفرق الاستشارية المهتمة والمؤهلة تقديم مقترحاتهم التي تتضمن ما يلي

a) A technical proposal, max 10 pages (excluding annexes)

• فهم المتطلبات الاستشارية.
• منهجية وخطة عمل لتنفيذ المهمة مدعومة بإثبات القيمة مقابل المال
• قائمة مرجعية مفصلة توضح نطاق وحجم المهام المماثلة.
• Relevant services undertaken in the last five (5) years.
• خطابات توصية من 3 شركات/مهام سابقة على الأقل
• التسجيل والوثائق القانونية الأخرى ذات الصلة (ينطبق ذلك على الاستشاريين المؤسسيين).
• All documents related to the technical proposal must be compiled into a single PDF file, organized with a clear Table of Contents

ب) مقترح مالي

• Clearly showing the proposed team member, roles, and proposed days and the proposed professional fee (daily rate and total amount per team member). The financial proposal shall also include an indication of reimbursables (travel, communication etc.). Currency to be in KES.

N/B: TECHNICAL AND FINANCIAL PROPOSALS BE SUBMITTED SEPARATELY. COMBINING THE FINANCIAL AND TECHNICAL DOCUMENT AS ONE DOCUMENT WILL AUTOMATICALLY DISQUALIFY THE APPLICANT.

8.0 Qualifications and Experience

The Consulting Firm should possess the following skills and/or credentials:

• Minimum of 5 years of experience in working with SACCOS and MSMEs in credit risk management or similar assignments for lead consultants.
• Experience in developing a credit management framework and manuals for SACCOs.
• Strong understanding of SACCO operations and business model.
• Experience in training teams and developing effective credit risk management policies and procedures.
• خبرة في توفير الإشراف على التنفيذ وتدريب الموظفين.
• مهارات تحليلية ومهارات تواصل وإعداد تقارير ممتازة.
• Knowledge of the development sector and in particular, working in the Kakuma/Kalobeyei area is an added advantage.
• An advanced degree in credit risk management, banking, or a related field for the lead consultant(s) will be a plus.
• Experience in Islamic Finance will be a plus.

9.0 معايير التقييم

MANDATORY EVALUATION CRITERIA.

a)  Mandatory Requirements for firms: –

1. الملف الشخصي للشركة.
2. الرخصة التجارية أو شهادة التأسيس أو شهادة التسجيل وغيرها من الوثائق القانونية الأخرى.
3. شهادة امتثال ضريبي سارية المفعول (تنطبق على الشركات).
4. Passport/National Identification of the lead consultant and key personnel

ن/ب: سيؤدي عدم إرفاق المتطلبات المذكورة أعلاه والالتزام بها إلى الاستبعاد التلقائي

سيتم تشكيل لجنة تقييم من قبل المؤسسة وقد تضم موظفين من الشركات التي سيتم دعمها. ويلتزم جميع الأعضاء بنفس معايير السرية. وينبغي على الاستشاري أن يتأكد من استجابته الكاملة لجميع المعايير التي سيتم تقييمها بشكل شامل.

يجوز للجنة الاستشارية أن تطلب وتتلقى توضيحات من أي استشاري عند تقييم المقترح. ويجوز للجنة التقييم دعوة بعض أو جميع الاستشاريين للمثول أمام اللجنة لتوضيح مقترحاتهم. وفي هذه الحالة، يجوز للجنة التقييم أن تنظر في هذه التوضيحات عند تقييم المقترحات.

عند البت في الاختيار النهائي لمقدم العرض المؤهل، ستعطى الجودة الفنية للعرض ترجيحاً بنسبة 80% استناداً إلى معايير التقييم. سيتم فتح العرض المالي لمقدمي العروض المؤهلين تقنياً فقط. سيتم تخصيص وزن ترجيحي للعرض المالي بنسبة 20% وسيتم ترتيب العروض من حيث مجموع النقاط المسجلة.

المعايير الإلزامية والمستحبة التي سيتم تقييم المقترحات على أساسها محددة في الجدول أدناه.

10.0 التسعير

تلتزم السلطات الضريبية الكينية باحتجاز الضرائب على رسوم عقود الخدمات وكذلك ضمان فرض ضريبة القيمة المضافة عند الاقتضاء. ويُنصح مقدمو الطلبات بالتأكد من أن لديهم فهم واضح لموقفهم الضريبي فيما يتعلق بأحكام التشريعات الضريبية الكينية عند وضع مقترحاتهم.

11.0 تفاصيل التطبيق

AECF هو صاحب عمل تكافؤ الفرص. تنظر AECF في جميع المرشحين المهتمين على أساس الجدارة بغض النظر عن العرق أو الجنس أو اللون أو الأصل القومي أو الدين أو التوجه الجنسي أو العمر أو الحالة الاجتماعية أو الحالة العسكرية أو الإعاقة أو أي خاصية أخرى يحميها القانون المعمول به.

• Interested consultancy firms are requested to submit their technical and financial proposal to aecfprocurement@aecfafrica.org by 12^th June, 5pm EAT
• All questions should be directed to the procurement email by 5^th June 2025, 5pm EAT.
• The subject of the email should be “TERMS OF REFERENCE FOR CONSULTANCY SERVICES TO DEVELOP CREDIT RISK MANAGEMENT FRAMEWORK IN KAKUMA-KALOBEYEI AREA”. The AECF shall not be liable for not opening proposals that are submitted with a different subject or responding to questions that did not meet the deadline as indicated.

 12.0 Disclaimer

تحتفظ AECF بالحق في تحديد هيكل العملية ، وعدد المشاركين في القائمة المختصرة ، والحق في الانسحاب من عملية الاقتراح ، والحق في تغيير هذا الجدول الزمني في أي وقت دون إشعار ، وتحتفظ بالحق في سحب هذه المناقصة في أي وقت ، دون إشعار مسبق ودون مسؤولية تعويض و / أو تعويض أي طرف.

لا تتقاضى اللجنة الاقتصادية لأفريقيا والشرق الأوسط رسوم طلب للمشاركة في عملية المناقصة، ولم تعين أي وكلاء أو وسطاء لتسهيل تقديم الطلبات. يُنصح مقدمو الطلبات بالتواصل مباشرة مع إدارة المشتريات في المؤسسة.