Latest Jobs in Kenya: TERMS OF REFERENCE FOR CONSULTANCY SERVICES FUND MANAGING PARTNER – DCA YOUTH ENTERPRISE FUND-DCA

1. Background

DCA Kenya country programme has been providing business and entrepreneurship skills training to refugee and host population youth in Kakuma Refugee Camp and Kalobeyei Settlement since 2017, adopting a blended learning[1] approach. From the project evaluation and learning from other existing entrepreneurship models, it is evident that lack of capital is the main impediment for young entrepreneurs to start, grow and expand their enterprises as the natural next step after skills development. To fill this gap, DCA conducted an evidence-based project modeling and design through the support of a project group made up of 4 other country programs. The assignment established a best fit model for Youth Enterprise Fund (DCA YEF). DCA YEF is modeled to receive individual donations and disburse loans as a sustainable financing approach for youth entrepreneurs in Kakuma Refugee Camp and Kenya at large. Some of the key recommendation proposed in the best fit model are;

i) Model Recommendations: DCA YEF should aim at empowering youth entrepreneurs. The Model of choice should therefore have a service suite comprising of i) enterprise development training, ii) grant funding, iii) Lending, and iv) Market linkage.

ii) Programme Term for the YEF: Launch the YEF on a fixed term basis and based on experience in running the programme consider whether to convert the programme to a perpetual fund.

iii) Finance Scope: Offer financing for business and build synergies with other efforts in the camp covering consumer needs.

iv) Partnership Matrix: DCA YEF to adopt a partnership matrix comprising of 1) DCA – Implementer, ii) Donor partner(s), iii) Fund Managing Partner (Banking institution /financial service provider), and iv) Other partners who render specialist services such as market linkages, climate smart and agri-based solutions.

v) Delivery Processes: Start with individual and group-based lending, mix high touch and high tech client contacts for credit management, and adopt paperless system.

DCA Youth Enterprise Fund (DCA YEF) will address the problem of inadequate funding for youth entrepreneurs in our context. The fund will focus on youth owned micro and small businesses with potential of eccelerating them to larger loans and other bigger funding opportunities in Kakuma. In terms of management for the revolving fund component of DCA YEF, the model recommends partnering with a financial service provider for disbursement and loan repayments. This way, DCA hopes to sustain the health of the fund through donations and loan repayment. It is also envisioned that the model will be scaled up in other DCA project sites in Kenya and replicated in one other DCA country program within the first year of operation of the DCA YEF.

In this regard, DCA Kenya is seeking the services of a Fund Managing Partner (preferably a financial service provider/ instititution with experience in business loans and credit to manage the DCA Youth Enterprise Fund in Kakuma with a keen focus on adopting/developing enabling credit management systems fit for youth entrepreneurs in Kakuma, disburse loans and receive repayment through revolving fund approach aligning with DCA internal procedures.

Purpose & objectives of the consultancy

The purpose of this assignment is to operationalize the already established best fit model for DCA Youth Enterprise Fund to disburse loans to at least 100 youth entrepreneurs in Kakuma and receive repayments. The key objectives of the assignment are;

  1. Adopt structures, systems, and procedures enabling management and roll-out of the DCA Youth Enterprise Fund based on the already established best fit model taking into consideration compliance with DCA NGO registration in Kenya, tax implications, impact on the current market, and other potential risks.
  2. Disburse loans to at least 100 youth entrepreneurs[2] in Kakuma, Kalobeyei and host community and consequently receive payments through revolving fund approach.
  3. Proactively facilitate collating and sharing of knowledge on lessons learnt, opportunities, challenges and risks involved in all the phases involved in the set-up and operationalization of the DCA YEF.

2. Scope of Work

The Fund Managing Partner will set-up and operationalize the DCA Youth Enterprise Fund in Kakuma, disburse loans to – and receive repayments from – youth entrepreneurs. This will include;

  1. Sensitization and creating awareness about the financial products under DCA Youth Enterprise Fund in collaboration with DCA to ensure understanding of the financing terms for quality applications, expectations management, and follow-up processes.
  2. Invite loan application, vet/appraise, and conduct due diligence for potential youth loanees in Kakuma, Kalobeyei and host community.
  3. Adopt enabling and prudent systems and procedures for the management of the revolving fund component to ensure judicious loan disbursement, repayments and tracking.
  4. Maintenance of financial statements/ledgers for the loan disbursed and repayment.
  5. Conduct routine performance monitoring and reporting on the fund including tracking all transactions and have opportunity to troubleshoot throughout the entire process.
  6. Work close with Fund Advisory Committee to share knowledge and experience, opportunities, areas of synergies with other players, challenges and risks through the entire period of engagement.
  7. Collaboratively adopt the exit/wind-up strategy for seamless transition as guided by DCA

3. Time Frame

It is estimated that the proposed project activities as highlighted will be conducted between June 2021 and December 2022

4. Deliverables

The Fund Managing Partner will operationalize the DCA YEF to disburse loans to youth entrepreneurs in Kakuma, Kalobeyei and host Community. The deliverables for this assignment will be;

· Functional systems and procedures for the management of DCA Youth Enterprise Fund including loan disbursement and repayments fit for youth entrepreneurs in Kakuma, Kalobeyei and host community.

· At least 100 loans processed and repayment received and or/ continuation of loaning cycles.

· Loan records, ledgers and financial statements on the performance of the loans

· Comprehensive fund report, which will include but not limited to, performance of loans, best practices, lessons learnt, recommendations and opportunities for future advancement of the fund.

5. Minimum Standards and Mechanism for the transfer

i) Credit/loan Management System: Potential fund Managing Partner should demonstrate the ability of their systems to support business loan disrbursement and receiving repayments based on the recommendations in the best fit model.

ii) Delivery Processes: The Fund Managing Partner should demonstrate evidence of adopting paperless systems and a blend of high tech and high touch client contact.

iii) Accountability and Transparency: The Fund Managing Partner should facilitate accountability and transparency throughout the loan disbursement and repayment providing regular loan reports to DCA that will be used for monitoring.

iv) Safety and Security: They should demonstrate evidence of how their systems will deal with safety and security, conduct KYC and due diligence procedures for effective loan disbursement and repayment.

v) Dedicated Service: The service provider should have a dedicated service focal point for DCA in the day to day and overall management of the revolving fund including responding to questions, troubleshooting and resolving any challenges within a reasonable timeframe, whenever they arise.

vi) Feedback Mechanism: The Fund Managing Partner should have a system for proactive feedback sharing throughout the process.

vii) Internal Control and Fraud Prevention: The Fund Managing Partner must have appropriate mechanism for internal control and fraud prevention in place and should be well elaborated in the proposal.

viii) Data Protection: The Fund Managing Partner must demonstrate how loanees data will be protected throughout and after the process.

ix) Operation costs: The Loan Managing Partner must clearly indicate the costs involved administering the DCA Youth Enterprise Fund.

6. Organization and management of the assignment.

DCA will avail the DCA Youth Enterprise Funds to the Fund Managing Partner for facilitating its administration and disbursement. In addition, DCA will bear the following responsibilities:

I. Collaboratively work with the Fund Managing Partner to conduct sensitization and awareness about the loan products under DCA Youth Enterprise Fund.

ii. Conduct business development training through blended learning approaches to youth entrepreneurs. This will involve business modelling and business plan development.

iii. Conduct mentorship and coaching to loanees

iv. Participate in vetting committees to appraise the loan applicants.

v. Create awareness on feedback and DCA complaints mechanism, and anti-corruption.

7. Qualifications for the financial Service Provider **

• Must be a recognized lending institution with strong operational and contextual understanding of Turkana West context with a refugee as well as host community setting.

• Must have proven experience in credit administration and/or implementation of revolving fund.**

• Must demonstrate understanding of financial needs and challenges of youth entrepreneurs.**

• Proven expertise in managing fund administration relationship with non-commercial institutions. **

• Solid understanding of loan regulations in Kenya including Sharia compliant business financing.. **

  1. Structure of the Proposal and Submission Guidelines

All expressions of interest should include:

i) Technical Proposal: Highlighting brief profile of the Fund Managing Partner and evidence of previous experience in this kind of work, understanding of the TOR and the tasks to be accomplished including the proposed workplan and any evidence of a similar assignment.

ii) Financial Proposal: The financial proposal should provide cost estimates for services to be rendered in the context of this ToR.

[1] Blended learning is an approach to education that combines online educational materials and opportunities for interaction online with traditional place-based classroom methods.

[2] There is a potential for growth as DCA fund raises to avail more capital for loans.

How to apply

Contact persons: **

Patrick Kibuku, DCA Head of Program (HoP) – Kenya. Email: patrick.kenya@dca.dk

Applications

All applications to be sent by email to: procurementkenya@dca.dk (clearly marked: ‘ Fund Managing Partner – DCA YEF not later than 24 May 2021.

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