PLEASE NOTE: THIS CONSULTANCY IS ELIGIBLE TO ONLY NATIONAL INDIVIDUAL CONSULTANTS.

BIDS FROM CONSULTING FIRMS WILL BE DISQUALIFIED

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 multifaceted 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)

RATIONALE

This assignment focuses on thematic area for financial access and inclusion. MESPT has adopted the principles of sustainable finance in its delivery of its mandate. The delivery model is anchored on wholesale lending, where MESPT provides debt capital to financial service providers, mainly Savings Societies, Micro finance Institutions and Micro Finance Banks for onlending to agricultural value chain actors. MESPT partnership with financial service providers (FSPs) is geared towards enhancing access and promoting financial inclusion among different agri-value actors. MESPT inclusion target is 40/30 where aspire to have 40% of women and 30% of youth in all interventions.

MESPT has undertaken relevant training and forums with financial service providers for sensitization of agri-value chain financing; sustainable finance; ESG principles and practices as well as facilitated two audits for Environmental and Social Performance Management. All these interventions have been able to reach out to 61 FSPs.

The financial sector is critical in the provision of investment capital for economic development. The utilization of such capital has a direct relation to environmental and social aspects of society.

MESPT is known for its focus on climate adaptation and mitigation practices within the agricultural value chains. The developmental and financial interventions must align with strategic focus of promoting green growth and inclusivity under green transformation thematic focus.

MESPT therefore wishes to assess the value and impact of its previous interventions on sensitization forums and trainings on ESG; identify the opportunity for adoption of ESG within the Saccos; identify the perspective of Sacco Societies Regulatory Authority (SASRA) and Commissioner of Co-operatives and any opportunity for partnership on this matter and what are the necessary actions required by MESPT to embed ESG in its credit delivery mechanism.

OBJECTIVES OF THE ASSIGNMENT

The objective of this consultancy is to undertake an assessment of the impact of previous MESPT intervention on ESG with FSPs; to gather the perspective of SASRA and commissioner of Co-ops and identify opportunities for partnership on this matter; develop a justification or otherwise on opportunities and mechanism of embedding ESG in MESPT credit delivery.

SPECIFIC OBJECTIVES

The objectives of the consultancy are to:

1. Determine the level of understanding of FSPs trained on ESG and to what action have they taken to embed ESG in their business operations. If no action, why not?
2. Assess the opportunity within the Sacco sector to embed ESG. This shall involve the engagement of SASRA; Commissioner of co-operatives and a few selected Saccos.
3. Determine the progress of implementation of the findings and recommendations of ESG audit for two selected FSPs.
4. To determine emerging challenges within financial sector to adopt ESG in their operations and provide any support mechanism required.
5. Determine the available opportunities for MESPT to embed ESG in its credit provision and develop tools and guidelines to facilitate ESG implementation.
6. To establish key monitoring tools and indicators.

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 FSPs; engagement with commissioner of co-operatives and engagement with Sacco Societies Regulatory Authority for a comprehensive feedback. The consultant shall be expected to undertake the following:

1. Desk review of MESPT documentation of MESPT previous interventions within the ESG space.
2. Engagement with MESPT team as well as representatives of FSPs. Where applicable, undertake onsite visits.
3. undertake interviews with commissioner of co-operatives and respective officers at Sacco Societies Regulatory Authority.
4. Develop guidelines, tools and indicators to facilitate embedding ESG into MESPT lending mechanism.
5. Develop comprehensive report capturing success cases, opportunities, challenges and way forward.

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 FSPs. 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.

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 FSPs, logistical support, list of documents for desk review (from both MESPT and FSPs) and timelines for the engagement.

Milestone 2:

Presentation of draft report upon conclusion of engagements with FSPs, Commissioner of Co-operatives and representative from SASRA and other stakeholders. Presentations will be made to MESPT Management team.

Milestone 3

Guidelines, tools and indicators to facilitate embedding ESG in MESPT credit delivery.

Comprehensive report on the entire assignment capturing success cases, opportunities, challenges, and way forward. This should also include identified GAPs within the FSPs and technical support necessary to drive ESG with FSPs.

Presentation of final report on findings, recommendations to management team.

CONSULTANT REQUIREMENTS

• Master’s degree in relevant field- (Agricultural Economics, Business Management, Finance, Economics, Accounting, Statistics, Mathematics, Sustainable Business), with professional certification in Environmental and Social Management System (ESMS).
• In-depth knowledge and experience in Microfinance finance and Savings and Credit Co-operative Societies sub-sectors, Agricultural/ Agri value chain finance, Climate/Green finance, Development finance, financial inclusion, Enterprise development and/or Agricultural Value Chain Development and ESG integration.
• Demonstrable experience in undertaking surveys and assessments within the financial sector including developing tools for data collection.
• Have a at least 5 years’ experience in training and implementing sustainable finance or Environmental and social performance management or sustainable finance within financial sector in Kenya.
• Qualification as social and environmental auditor will be an added advantage.