Business Advisory Services in Investment and Credit Facilitation for Kenya Investment Mechanism (KIM) Project

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.

KIM will use a portion of its resources to engage BASPs to assist enterprises operating in Kenya access advisory services in order to obtain finance and investment, as a part of our effort to mobilize $400M in financing by August 2023. This Tender is a call for BASPs to participate in KIM’s Pay-for-Performance (P4P) subcontracts program. In order to become eligible under this Tender, BASPs must demonstrate a track record of successfully assisting enterprises secure financing (debt/equity) in the targeted sectors as highlighted in section 3 below. The objective is to create a vibrant network of BASPs competing with each other to close capital and financing opportunities. Therefore, we intend to engage multiple BASPs through this procurement.

BASPs will be eligible to receive success fee commissions for supporting two categories of transactions under this subcontract:

Dairy, Livestock and Horticulture deals. BASPs may provide investment and credit facilitation services for success fee commission for transactions that support USAID’s Feed the Future Initiative. Approved enterprises must be located within, or must work with suppliers/producers that are located within, the 17 Feed the Future counties in Kenya: Homa Bay, Migori, Kisii, Kisumu, Siaya, Kakamega, Bungoma, Busia, Vihiga, Kitui, Makueni, Taita Taveta, Isiolo, Marsabit, Turkana, Garissa, and Wajir. The BASP’s client enterprise must be located in, selling to, or buying from any of these 17 counties to qualify for success fees.

Enterprises supported by BASPs to access finance and investment under this category must be conducting business in dairy, livestock, or horticulture value chains (VC). A value chain (VC) is the process or activities by which a company adds value to an article, including production, marketing, and distribution. Examples of value chain actors eligible for support include input dealers, producers, processors, aggregators, storage providers, traders, retailers, exporters, agriculture logistics firms, and technology providers.

Horticulture includes mango, passion fruit, banana, avocado, pineapple, sweet potato and African leafy vegetables only. Any link in the VC can be a candidate for KIM’s facilitating financing, e.g., financing that supports sorghum/maize producers or processors (if used for livestock feed for livestock) in any of the 17 target counties, would qualify.

US Nexus Transactions. BAS providers will be eligible to receive success fee commissions for providing credit and investment facilitation services for transactions that support USAID’s Prosper Africa initiative , which aims to increase bilateral trade and investment between the US and Africa by mobilizing investment for deals with a US nexus. BASPs may provide investment and credit facilitation support for transactions that meet one of the following criteria:

  • Transactions that will directly involve or are likely to involve an investment (debt or equity) by a U.S.-owned entity into any eligible Kenyan entity.
  • Any transaction in which the Kenya and East African entity has 20% or more U.S. ownership will also count under this definition as that organization will itself be considered a U.S. entity.
  • Transactions that will directly support and ideally increase Kenya exports and imports with United States.

Prosper Africa is sector agnostic, other than USAID’s prohibited sectors of activity (including but not limited to alcohol, tobacco, firearms). However, all transactions and parties must meet Palladium and USAID’s requirements including but not limited to environmental risk mitigation, workers’ rights, and impact on U.S. jobs (e.g. prohibiting any transactions facilitating the relocation or transfer of jobs from the United States to other countries and which adversely impacts the labor force in the United States) as will be further detailed within the BASP subcontract. While not an exhaustive list, the following sectors may have high potential: 1) Apparel and Related Manufacturing; 2) Agricultural Inputs and Processing; 3) Telecommunications, Media and Technology; 4) Tourism and Hospitality; 5) Health and 6) Infrastructure and PPPs.

Please see attached Invitation to Tender (ITT) for additional details and scope of work. Please send your Tender in accordance with the Details for Submission above by the Closing Date and Time to Ben Omondi Otieno, KIM Subawards Manager, at us.KIMprocurement@thepalladiumgroup.com. Please submit questions by email to us.KIMprocurement@thepalladiumgroup.com.

Details

Kenya

Closing date:
14 August 2020