Financial Institutions/Intermediaries for Investment and Credit Mobilization for Kenya Investment Mechanism (KIM) Project

Update: Frequently Asked Questions (FAQs) have been added to the tender. Please see page 24 of the tender for all FAQs.


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. As one of three projects in USAID KEA’s “Market Systems Suite,” the Feed the Future Kenya Investment Mechanism (KIM) program was designed to promote access to finance essential for fostering the development of Kenya’s agricultural market system. By unlocking finance necessary to commercialize upstream and downstream agribusinesses, KIM will pull resource-poor smallholders and SMEs into competitive and growth-oriented value chains, and contribute to USAID’s overall goal of fostering broad-based, sustained, and inclusive economic growth in Kenya.

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 apply a portion of our resources to incentivize financial institutions (banks and non-banks; debt or equity providers) to mobilize finance and investment toward any link in the target value chains, as a part of our effort to mobilize $400M in financing over the next 4.5 years. This Tender is a call for Financial Institutions/Intermediaries/Investors (FIs) committed to expand lending to or investing in agriculture (horticulture, dairy, livestock) enterprises to participate in KIM’s Pay-for-Performance subcontracts program, in order to receive success fee payments for mobilizing new financing (debt or equity) that meets the qualifications listed in this Tender. Success fee payments will be made by KIM on a periodic basis, based upon the accomplishment of financing targets set by FIs responding to this tender.

FIs will be eligible to receive a success fee award payment for investment or credit mobilization under this term of reference to client enterprises located in (or working with suppliers/producers located in) the 17 Feed the Future focus counties of Kenya: Homa Bay, Migori, Kisii, Kisumu, Siaya, Kakamega, Bungoma, Busia, Vihiga, Kitui, Makueni and Taita Taveta and the five counties in the arid lands of Northern Kenya, namely Isiolo, Marsabit, Turkana, Garissa and Wajir. As long as the client enterprise is either located in, sells to, or buys from any of the 17 counties, this will qualify as an eligible entity for success fee commission.

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:
8 April 2019