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

1.0 O Africa Enterprise Challenge Fund

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.

O AECF está sediado no Quénia e tem escritórios na Costa do Marfim, Tanzânia, Nigéria, Sudão do Sul, Benim e Somália.

2.0 Sobre o Kakuma Kalobeyei Challenge Fund (KKCF)

O Kakuma Kalobeyei Challenge Fund (KKCF) é um programa quinquenal da Sociedade Financeira Internacional (SFI), implementado com o Africa Enterprise Challenge Fund (AECF), o Governo do Condado de Turkana e o ACNUR. O KKCF tem origem nos dados de mercado do estudo da IFC "Kakuma as a Marketplace", que quantificou a economia de Kakuma e confirmou que se tratava de um mercado dinâmico e potencial. Isto despertou um grande interesse que contribuiu para a concetualização do KKCF e para o desenvolvimento do Programa.

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/

A KKCF aplica um mecanismo de financiamento competitivo para desembolsar fundos de doadores para incentivar as empresas a iniciarem ou aumentarem as operações existentes na área de Kakuma-Kalobeyei. O processo começa com a publicação de um convite à apresentação de propostas. Os candidatos são então submetidos a um processo de seleção competitivo que conduz à identificação das empresas que melhor se adaptam à dinâmica do mercado de Kakuma-Kalobeyei, a fim de produzir o impacto socioeconómico pretendido nas comunidades de acolhimento e de refugiados, contribuindo simultaneamente para o desenvolvimento do condado de Turkana.

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:

• Aumentar os rendimentos tanto dos refugiados como das comunidades de acolhimento.
• Fornecer bens e serviços essenciais.
• Criar empregos e estimular o crescimento económico.
• Melhorar o nível de vida das pessoas no campo de refugiados e nas comunidades circundantes.
• 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 Objetivo da missão

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 Relatórios

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

7.0 Proposal Submission

Convidam-se as pessoas ou equipas de consultoria interessadas e qualificadas a apresentar a(s) sua(s) proposta(s), incluindo o seguinte

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

• Compreensão dos requisitos de consultoria.
• Metodologia e plano de trabalho para a realização da missão, com base numa demonstração da relação custo-benefício
• Lista de referências pormenorizada que indique o âmbito e a dimensão de trabalhos semelhantes.
• Relevant services undertaken in the last five (5) years.
• Cartas de referência de, pelo menos, 3 empresas/empregos anteriores
• Registo e outros documentos estatutários pertinentes (isto aplica-se aos consultores institucionais).
• All documents related to the technical proposal must be compiled into a single PDF file, organized with a clear Table of Contents

b) Uma proposta financeira

• 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.
• Experiência na supervisão da execução e na formação do pessoal.
• Excelentes capacidades de análise, comunicação e elaboração de relatórios.
• 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 Critérios de avaliação

MANDATORY EVALUATION CRITERIA.

a)  Mandatory Requirements for firms: –

1. Perfil da empresa.
2. Licença comercial ou certificado de constituição ou certificado de registo e outros documentos estatutários.
3. Certificado de conformidade fiscal válido (aplicável às empresas).
4. Passport/National Identification of the lead consultant and key personnel

N/B: A NÃO ANEXAÇÃO E O NÃO CUMPRIMENTO DOS REQUISITOS ACIMA REFERIDOS IMPLICAM A DESQUALIFICAÇÃO AUTOMÁTICA

Um comité de avaliação será constituído pela AECF e poderá incluir trabalhadores das empresas a apoiar. Todos os membros estarão sujeitos às mesmas normas de confidencialidade. O consultor deve assegurar-se de que responde plenamente a todos os critérios para ser avaliado de forma exaustiva.

O AECF pode solicitar e receber esclarecimentos de qualquer consultor aquando da avaliação de uma proposta. O comité de avaliação pode convidar alguns ou todos os consultores a comparecer perante o comité para esclarecer as suas propostas. Nesse caso, o comité de avaliação pode ter em conta esses esclarecimentos na avaliação das propostas.

Para decidir a seleção final do proponente qualificado, a qualidade técnica da proposta terá uma ponderação de 80% com base nos critérios de avaliação. Só será aberta a proposta financeira dos proponentes que se qualificarem tecnicamente. À proposta financeira será atribuída uma ponderação de 20% e as propostas serão classificadas em função do total de pontos obtidos.

Os critérios obrigatórios e desejáveis em função dos quais as propostas serão avaliadas são identificados no quadro seguinte.

10.0 Determinação de preços

O AECF é obrigado pelas autoridades fiscais quenianas a reter os impostos sobre os honorários dos contratos de prestação de serviços, bem como a garantir a cobrança do IVA, se for caso disso. Recomenda-se aos candidatos que, ao elaborarem as suas propostas, se assegurem de que têm um conhecimento claro da sua situação fiscal no que respeita às disposições da legislação fiscal do Quénia.

11.0 Detalhes da aplicação

O AECF é um empregador que oferece igualdade de oportunidades. O AECF considera todos os candidatos interessados com base no mérito, sem ter em conta a raça, o género, a cor, a nacionalidade, a religião, a orientação sexual, a idade, o estado civil, o estatuto de veterano, a deficiência ou qualquer outra caraterística protegida pela legislação aplicável.

• 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

O AECF reserva-se o direito de determinar a estrutura do processo, o número de participantes na lista restrita, o direito de se retirar do processo de apresentação de propostas, o direito de alterar este calendário em qualquer altura sem aviso prévio e reserva-se o direito de retirar o presente concurso em qualquer altura, sem aviso prévio e sem responsabilidade de indemnizar e/ou reembolsar qualquer parte.

O AECF não cobra qualquer taxa de candidatura para participar no processo de concurso e não nomeou quaisquer agentes ou intermediários para facilitar as candidaturas. Aconselha-se os candidatos a contactar diretamente o departamento de aquisições do AECF.