Consultancy for Conducting Business Needs Assessment & Mapping Relevant Business Development Services (BDS) – RFP No.323528 At Danish Refugee Council

Terms of Reference (TOR)

Consultancy for Conducting Business Needs Assessment & Mapping Relevant Business Development Services (BDS) Providers in Nairobi and Mandera

Who is the Danish Refugee Council?

Founded in 1956, the Danish Refugee Council (DRC) is a leading international NGO and one of the few with specific expertise in forced displacement. Active in 40 countries, with 9,000 employees and supported by 7,500 volunteers, DRC protects, advocates, and builds sustainable futures for refugees and other displacement-affected people and communities. DRC works during displacement at all stages: in the acute crisis, in displacement, when settling and integrating in a new place, or upon return. DRC provides protection and life-saving humanitarian assistance; supports displaced persons in becoming self-reliant and included in hosting societies; and works with civil society and responsible authorities to promote the protection of rights and peaceful coexistence.

DRC has been operational in Kenya since 2005 and is one of the United Nations High Commissioner for Refugee (UNHCR) largest implementing partners in refugee response. DRC is present in Garissa (Dadaab & Garissa), Turkana (Kakuma, Kalobeyei & Lodwar), Lamu, Isiolo, Marsabit, Nairobi and Mandera counties.

Purpose of the Consultancy

The Danish Refugee Council in Kenya seeks proposals from qualifying consultancy firms to undertake mapping of relevant BDS providers in Nairobi and Mandera. The main purpose of the consultancy is to identify the entrepreneurship needs of the targeted entrepreneurs, identify, interact, engage and assess the work and capacity of various and relevant BDS providers in Nairobi and Mandera, to provide services that can enhance financial inclusion and economic participation of entrepreneurs from refugees and host community members within the framework of the SDACKED project. The mapped BDS providers should be formally registered outfits with a history of providing relevant support services to communities and entrepreneurs. They should have the capacity to handle grants and implement a project that seeks to build the capacity of entrepreneurs through provision of capacity building, technical assistance, mentorship and coaching, to thrive in an entrepreneurship ecosystem that constantly faces challenges with incessant barriers.

As part of the capacity building interventions, the project staff are certified International Labour Organization (ILO) trainers through entrepreneurship curricula of Gender & Entrepreneurship Together (GET Ahead) and Start and Improve Your Business (SIYB). For sustainability of capacity building and technical assistance to the targeted entrepreneurs, the identified BDS providers shall be expected to continue providing these services.

The entrepreneurs are being supported under the Supporting Displacement Affected Communities in Kenya with Entrepreneurship Development (SDACKED) project being implemented by DRC and funded by the government of Sweden.

Background

DRC Kenya, in partnership with KCB Bank, KCB Foundation, and a digital financing partner, is implementing a project titled Supporting Displacement-Affected Communities in Kenya with Entrepreneurship Development (SDACKED) supported by the Swedish government that focuses on unblocking barriers to formal financial access for displaced and host community entrepreneurs by working through Community Savings and Loans Associations (CSLAs), connecting them to digital banking services as well as exploring wider entrepreneurship support in target locations of Nairobi and Mandera counties. The project targets three areas of intervention that includes: financial inclusion of refugee and hosting community entrepreneurs, business support & training, and suitable finance to build the displacement-affected communities’ business ecosystem. This is besides advocating for inclusion of this group of entrepreneurs in formal financing and addressing their protection concerns.

The SDACKED project aims to develop an inclusive entrepreneurship system across Kenya, supporting increased financial inclusion and economic participation for refugees and their host communities.

The Objective of the Consultancy

The consultant is expected to identify and assess the capacity of BDS providers in Nairobi and Mandera to benefit refugees and host community enterprises.

The specific objectives of this consultancy are:

• To identify the business needs of entrepreneurs supported in the SDACKED project with a view to matching those needs with the services offered by the identified BDS providers.
• To identify, interact, engage and assess the work and capacity of various and relevant BDS providers in Nairobi and Mandera, to provide services that can enhance financial inclusion and economic participation of entrepreneurs from both refugees and host community members within the framework of the SDACKED project
• To create a comprehensive directory of BDS providers operating in Nairobi (and its environs) and Mandera.

Responsibilities

The general responsibilities of the consultant are:

• Propose a sound methodology, questions, and tools in line with the stated objectives.
• Develop a consultancy work plan.
• Review the programme documents, prepare the Inception Report, data collection tools for review and feedback.
• Review existing secondary literature to inform the development of a conceptual framework.
• Conduct focus group discussions and key informant interviews which will include engaging relevant project staff from both Nairobi and Mandera.
• Conduct data collection in line with data protection regulations and perform data quality checks to ensure its accuracy, validity, and integrity.
• Conduct primary data collection through field visits and interviews both in Nairobi (including its metropolis, where the project is being implemented) and Mandera.
• Conduct data cleaning, processing, and analysis.
• Prepare and submit a draft final report for review and feedback.
• Validate findings with DRC i.e. preliminary presentation of the reports. A validation workshop shall be conducted in Nairobi.
• Submit a comprehensive final report and annexes.

The general responsibilities of DRC and its partners are:

• Provide access to project documents, reports, and relevant data for the exercise.
• Provide an office operation desk where the consultant would operate from during the duration of the assignment.
• Facilitates the consultant’s access to project sites, respondents, and key informants.
• Brief stakeholders about the purpose of the exercise.
• Participate in key informant interviews and discussions as required.
• Review the methodologies, including data collection tools designed by the consultant.
• Review and provide feedback on the draft reports.
• Act on the recommendations provided in the final report to improve future project planning and implementation.
• Prepare and effect payment for the consultant in instalments as agreed upon and upon completion of the assignment.

Scope of Work

• The exercise should be done within the existing national legal, policy, and regulatory framework. It will involve conducting a thorough evaluation utilizing a mixed-method approach, integrating both qualitative and quantitative data collection methods. The exercise will focus on mapping the BDS providers in Nairobi (and its environs) and Mandera, identifying the business needs of entrepreneurs supported in the SDACKED project with a view to matching those needs with the services offered by the identified BDS providers. The assignment shall also involve creating a comprehensive directory of BDS providers operating in Nairobi (and its environs) and Mandera.

The final deliverable will be a detailed report containing key findings, analysis, and actionable recommendations.

Methodology

The consultant is expected to propose scientifically, culturally, and socially appropriate approaches that will be used to achieve the objectives of the assignment. The exercise will follow a collaborative and participatory mixed methods approach that draws on both existing and new quantitative and qualitative data.

The methodology design should be developed by the consultant in consideration of the information outlined in this TOR, to ensure accuracy and rigour. A detailed methodology and data collection tools will be included in the technical proposal, which will be further defined and fine-tuned during the exercise´s inception phase, in consultation with all key stakeholders. Modalities of communication, feedback mechanisms, and contact with stakeholders will be discussed further during the inception phase.

The following will guide the development of the methodology:

• Desk Review

Desk review will be conducted by the consultant/consultancy firm to inform the methodology and development of the tools. In addition, desk review should cover the following documents: project proposal, interim reports and secondary literature. The desk review process should serve as a guide for the consultant to continue gathering resources that would enable him/her to carry out the exercise.

• Survey Development

The consultant will design a structured survey instrument tailored to capture relevant information about business needs of the entrepreneurs currently being supported in the SDACKED project both in Nairobi and Mandera and identifying the BDS providers in the relevant areas; including services offered, target clients, geographical coverage, and pricing. The survey should be culturally sensitive and contextually relevant to both Nairobi (and its environs) and Mandera.

• Sampling Strategy

The consultant will utilize a purposive sampling approach to identify a representative sample of BDS providers in both areas and the entrepreneur needs. Further, the consultant will engage with local business associations among other entities, to identify potential BDS providers and ensure diverse representation (e.g., micro, small, and medium-sized enterprises).

• Data Collection

-Quantitative Data Collection: The consultant will utilize structured survey to conduct face-to-face interviews and online surveys with identified BDS providers.

-Qualitative Data Collection: The consultant will conduct focus group discussions and in-depth interviews with key informants, such as local business leaders and entrepreneurs, to understand their needs, context and impact of BDS services being provided.

-Field Visits: The consultant will conduct site visits to selected BDS providers in both target areas, to gather first-hand information and verify data collected through surveys and interviews.

• Data Analysis

The consultant will analyze quantitative data using statistical methods. Further, s/he will also employ thematic analysis for qualitative data to extract key themes and narratives related to the challenges and opportunities within the BDS landscape.

• Stakeholder Engagement

The consultant will engage relevant stakeholders through workshops and presentations to validate findings, gather further insights, and ensure stakeholders from both target areas have an opportunity to contribute to the process.

• Reporting

The consultant will compile findings in a clear, concise, and accessible report, including maps, charts, and other visual aids to communicate results effectively. Also, the consultant will provide actionable recommendations based on the findings to inform future BDS initiatives and support mechanisms.

Ethical Considerations

The exercise will follow the essential ethical guidelines concerning conducting a study in the arena of business development services. It is crucial to ensure that the risks of potential harm to participants resulting from the data collection process are minimized and are outweighed by the potential benefits of the outcomes of the study.

Generally, the consultant will consider the following key ethical considerations during the process:

1. Respect for Participants: The consultant should prioritize the dignity, rights, and well-being of the participants, ensuring their informed consent and meaningful participation in the study.
2. Data Confidentiality: The consultant must safeguard the confidentiality of all sensitive data collected during the exercise, ensuring that personal information and individual responses remain secure and anonymous.
3. Avoiding Harm: The consultant should assess potential risks and ensure that the exercise does not inadvertently cause harm or distress to the participants or community members.
4. Conflict of Interest: The consultant must disclose any potential conflicts of interest and maintain objectivity and impartiality throughout the exercise, avoiding any bias or influence that could compromise the findings.
5. Transparency and Accountability: The consultant should provide transparent explanations of the methodology, purpose and potential impact to all relevant stakeholders while fostering trust and accountability in the process.
6. Cultural Sensitivity: The consultant must demonstrate cultural sensitivity and respect for local norms, traditions, and customs, adapting the study approach to align with the cultural context of the project area under focus.
7. Feedback: The consultant should incorporate mechanisms for soliciting and incorporating feedback from the participants ensuring their voices are heard and considered in the exercise.
8. Compliance with Professional Standards: The consultant should adhere to professional standards of the exercise including accuracy, integrity, and honesty in the collection, analysis, and reporting of data.

Key Deliverables

1. Inception report (describing):

• A detailed methodology on how the information and data will be collected and analyzed. The conceptual framework should be included as part of the methodology.
• A detailed sampling framework for location, respondents, and relevant documents for review.
• A detailed plan of action on quality control measures to be applied.
• Detailed work plan and indicative workload.

1. First draft final report, submitted for review by DRC Kenya.
2. Final report: A comprehensive final report highlighting the findings and practical recommendations (incorporating feedback from DRC).
3. One validation workshop to present key findings and recommendations to DRC for validation.
4. Annexes including:

• Data sets (raw data, photos, etc.)
• Validation workshop presentation 7 report.

Process and Timeframe

Total duration 21 days

The Consultant will provide documentation by email to the SDACKED Project Manager on copying all relevant project staff.

Budget

This budget should include the consultant’s fees and taxes, any travel and expenses that might be required for data collection (keeping in mind the exercise will also be conducted in Mandera), and any costs related to telephone or internet use, transcriptions, software licenses, and office material.

Payment for the service

DRC Kenya will pay the consultant the full consultancy fees in Kenya shillings as will be agreed upon in the contract. Payment will be made on presentation and approval of key deliverables to DRC Kenya in the following distribution:

• 40% of the fees will be paid upon submission of a satisfactory Inception Report.
• 30% upon completion and submission of the first draft report.
• 30% will be paid after submission and acceptance of the final report.

Proposed Composition of Team

The consultancy firm should have:

• A lead consultant with expertise in business development services.
• A field researcher familiar with local conditions in Nairobi and Mandera.
• Support staff for data collection and analysis.

Eligibility, qualification, and experience required

Essential:

• The consultancy firm / individual consultant is registered under the Laws of Kenya.
• Must have at least 5 years’ experience in financial/business management, with proven experience in mapping and assessing BDS providers or similar consultancy projects.
• Advanced degree in Business, Finance, Economics, or related fields, with extensive experience in research.
• Excellent spoken and written communication skills in both English and Kiswahili. Knowledge of Somali language is a plus.
• Good data analysis, presentation, and visualization skills.
• Excellent skills and ability to articulate ideas clearly and accurately including the ability to prepare reports.

Desirable:

• Working experience with host and refugee community in Nairobi or any other urban setting is an added advantage;
• Strong interpersonal and analytical skills with the ability to establish and maintain effective working relations.
• A solid understanding of Kenya’s economic and cultural context especially in refugee space.
• Consultant living/ working in Kenya.

Technical supervision

The selected consultant will work under the supervision of the SDACKED Project Manager

Location and support

The assignment will be coordinated from the DRC Eastleigh Urban program office and DRC Mandera Field Office. The consultant will use his/her computer and mobile telephone to do the exercise. The SDACKED Project Manager and the Economic Recovery and MEAL team at the DRC Urban program and Mandera Field Office will be responsible for the overall coordination of the exercise with the consultant to ensure timely and quality output.

DRC will provide relevant documentation and background information, approve data collection tools and reports, and provide consolidated feedback/guidance on draft reports and mobilization of stakeholders during the validation workshop.

Travel

The Consultant will be expected to arrange for their own logistics (transportation, meals, accommodation, etc) to the field areas (Nairobi metropolitan and Mandera) and to make adequate provisions in the Financial Proposal.

The consultancy is expected to be conducted during the month of January 2025.

Evaluation of bids

All bidders will be scored on a scale from 1 – 10 for each of the below criteria and will be assessed for profile and qualifications (document 1), technical approach (document 2), work plan, practical and clear bid to read (document 3). Bids will be scored according to the criteria below for the initial screening:

The proposals will be evaluated against the criteria indicated below. Each proposal will be evaluated against a weight allocation of 70 for the Technical Proposal and 30 for the Financial Proposal. The total maximum obtainable points are 100.

1. Proposals passing the minimum technical pass score (49 points- 70%) of the maximum points obtainable for technical proposal) will continue into the financial proposal evaluation stage.
2. Financial proposal evaluation: The lowest price proposal will be awarded the full score assigned to the financial proposal.
3. Recommendation: The recommendation for the award will be based on the best combination of technical and financial scores.
4. Final award and contracts: Based on verified nominations and final scores, contract negotiations could be initiated with one or more successful proposers.

The DRC evaluation team will select the proposal, which is of high quality, clear, meets the stated requirements, offers the best combination of technical and financial scores.

Only those shortlisted will be contacted for an interview with the panel to ensure their understanding of the consultancy requirements.

DRC will conduct reference checks from at least 2 previous works as an additional mandatory requirement.

Please find complete bidding documents in the following link: RFP 323528 PROVISION OF BUSINESS NEEDS ASSESSMENT & MAPPING RELEVANT BUSINESS DEVELOPMENT SERVICES (BDS) PROVIDERS IN NAIROBI AND MANDERA CONSULTANCY