FEED THE FUTURE
REQUEST FOR PROPOSALS
The Feed the Future Kenya Investment Mechanism [KIM] is a five-year project that will unlock financing and investment by addressing two principal market failures that have discouraged investors from financing certain segments of the clean energy and agriculture sectors: 1] insufficient quality consulting services (financial, transaction advisory, strategy and business performance], and 2] limited availability of financial products tailored to agriculture and clean energy.
To address these market failures, KIM will create a sustainable, market-based ecosystem for finance and investment by mobilizing capital into the horticulture, dairy, livestock, and clean energy value chains [VCs], and facilitating an enabling environment conducive to investment. This program will mobilize private capital into target VCs through smart incentives to business advisory services [BAS] providers and financial institutions [FIs] that encourage deeper engagement in KIM’s target sectors, and by building partnerships with key actors that can deliver access to market, know-how, and technology to drive VC competitiveness. Concurrently, KIM will lead policy reform efforts focused on removing barriers inhibiting large-scale investment into the target sectors, therefore unlocking further finance. The two objectives of KIM will result in the project serving as an investment platform that mobilizes substantial capital from the public and private sectors and builds partnerships between stakeholders in the financial ecosystem, ultimately contributing to USAID's overall goal of fostering broad-based, sustained, and inclusive economic growth in Kenya.
The Role of Financial Institutions/intermediaries/investors
Feed the Future Kenya Investment Mechanism [KIM] intends to roll-out an incentive program to Financial Institutions/lntermediaries/lnvestors [FIs] interested in mobilizing capital into the horticulture, dairy and livestock value chains [VCs],
Responses to this RFP are therefore being solicited from interested FIs (banks and non-banks] that are willing to partner with KIM to implement this incentive based, pay-for-performance program. FIs will be expected to mobilize investment or capital in enterprises engaged in the horticulture (specifically mango, passion fruit, banana, avocado, pineapple, sweet potato, African leafy vegetables, groundnuts, soybean, sorghum, green gram, and maize], dairy and livestock value chains. Any link in the VC will be a candidate for KIM's financing support, and thus success fee payments to selected FIs in any of the 17 target counties qualifies for KIM assistance. Enterprises must be located in, selling to, or sourcing from these 17 counties.
KIM Target counties: Homa Bay, Migori, Kisii, Kisumu.Siaya, Kakamega, Bungoma, Busia, Vihiga, Kitui, Makueni and Taita Taveta and five counties in the arid lands of Northern Kenya that is, Isiolo, Marsabit, Turkana, Garissa and Wajir.
This financing may include working capital, capital investment, and equity investments in the targeted value chains. All commercial actors in the target value chains are eligible for financing (“Qualified Financing”), subject to the following criteria:
• The business is commercially viable and fulfilment of financing terms on the part of the Recipient can reasonably be anticipated.
• The business involves direct and/or indirect linkages to the 17 focus counties mentioned above.
• There is reasonable expectation of positive social, financial, and economic benefits that will accrue to farming communities.
• No immitigable effect on the environment is expected. The Subcontractor will be required to develop and utilize an environmental screening process and screen qualifying investments in line with USAID policies (in accordance with 22 CFR 216],
KIM strongly encourages and welcomes the facilitation of financing for women-led or youth-led enterprises, or to enterprises that will be able to employ more women or youth once they receive financing
FIs who wish to respond to this Tender must meet the following minimum eligibility qualification criteria and provide corresponding supporting documents:
i. Must be a registered legal entity in Kenya and provide copy of certificate or articles and memorandum of association.
ii. Must have Central Bank of Kenya [CBK] or appropriate regulatory/certification;
iii. Must have been in operation for at least three years; where the institution operated under a different name or arrangement prior to the current legal status demonstrated by the registration documents, please attach relevant documents.
iv. Non-US Company Data sheet completed, dated, and signed (Attached in Section 6);
v. Must submit signed audited financial statements for the most recent two years.
vi. Must have been operating profitably for at least one of the most recent two years.
vii. Must have a DUNS number (instructions for obtaining a DUNS number may be found here https://www.dnb.coin/duns-number/get-a-duns.html.
viii. Must not have any active exclusions in www.sam.gov, UN or other international compliance databases.
ix. Must be owned by nationals of a country not considered a prohibited source or barred from doing business with the United States.
Interested financial institutions should go to the following link for detailed updated tender document including frequently asked questions and responses: https://thepalladiumgroup.com/tender/Financial-Institutionsintermediaries-for-Investment-and-Credit-Mobilization-for-Kenya-Investment-Mechanism-KIM-Project
Modification to Submission timelines and guidelines
This Request for Proposal for Financial Institutions has been extended from Monday, March 25,2019 to Monday, April 8,2019. All questions and their responses have been included in the updated tender document available on the provided link.
Evaluations of responses to this Tender shall be conducted and results communicated to respondents (it is anticipated] within 30 days after the proposal submission deadline. KIM reserves the right to close this window at its own discretion or when the expected number of Financial Institutions/lntermediaries needed for this round is achieved.
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