RFP 323528 – Consultancy on mapping Formal financial service providers that can provide access to finance to refugees and hosting communities in Kenya At Danish Refugee Council

Terms of Reference (TOR)

RFP 323528 – Provision of services for mapping Formal financial service providers that can provide access to finance to refugees and hosting communities in Kenya.

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 a 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 into hosting societies. DRC works with civil society and responsible authorities to promote protection of refugee rights and peaceful co-existence.
DRC has been present in Kenya since 2005 working with the displaced, offering support in areas of protection, livelihoods and armed violence reduction. The areas of operation includes: Dadaab, Kakuma refugee camps (including Kalobeyei Integrated Settlement), as well as with urban refugees in Nairobi and Mandera.

Purpose of the Consultancy
The Danish Refugee Council based in Kenya seeks proposals from a consulting firm to collaborate in providing services that will ensure that refugees and host community in Dadaab and Fafi are able to access formal finance that is fully compliant with Sharia law, ensuring that communities through individual MSMEs, VSLAs and Self Help Groups in Dadaab and Fafi are aware of the rules and processes to be able to effectively engage in financial inclusion and feel comfortable with Sharia financial products available from the FSPs. The collaboration will ensure there is improved access to financial services including Sharia compliant credit facilities to refugees and host community hence effectively helping them further develop their business activities and improved self-reliance. As part of its mission to assist displacement-affected communities, DRC Kenya intends to work with the consulting firm to accelerate financial access through the following key areas of delivery:

1. Conduct mapping of the existing formal financial service providers institutions that are interested and can provide relevant formal financial services to Displacement Affected Communities (DAC) in a sustainable manner including sharia compliant products available.
2. Conduct mapping of the existing enabling stakeholders/institutions that are key for financial inclusion in DAC whilst highlighting their roles and Identify Stakeholder Allegiance matrix.
3. Engage with stakeholders identified to highlight the opportunities and barriers that formal financial service providers face in establishing/providing financial services to Displacement affected community.
4. Explore and identify Diaspora financing models – exploring the potential for diaspora financing as an alternative financing mechanism for refugees in Kenya. This will cover the enabling actors, expected challenges.
5. Facilitate dissemination of the findings to key DRC staff and select financial inclusion actors in displacement affected communities.
6. Develop a short script flier to disseminate the Key formal financial service providers listed.

Background
In this context, Danish Refugee Council and its partners (Refugee Consortium of Kenya-RCK, Pastoralist Girls Initiative -PGI, Rights Organization for Advocacy and Development-ROAD and Regional Durable Solutions Secretariat-ReDDS) is implementing the Area Based Livelihoods Initiative II Garissa project for 2.5 years, targeting displacement affected persons in Fafi and Dadaab Sub-Counties of Garissa County in Kenya, funded by European Commission. The project is a scale up of ABLI G phase 1 which was successfully completed in December 2023, funded by the European Union Trust Fund (EUTF). The new phase which commenced in January 2024, seeks to expand private sector partnership while adapting a market systems approach. From lessons learnt in phase 1, access to finance and MSME development needs to be sustainable. Business development training was seen as critical to success and also scaling onwards with other potential MSME’s. Phase I ABLI Project also recommended establishing linkages with private sector actors, building skills of VSLA’s and increasing access to formal financial inclusion. In the current action we are exploring mapping and increasing linkage to financial service providers for MSMEs, VSLAs and Self-Help Groups. The project targets areas of interventions that include financial inclusion of refugee and hosting community entrepreneurs, business support & training, and building 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.

Objectives of the Consultancy
The consultant is required to conduct the following activities to achieve the following objectives:
I. Identify formal financial service providers that already provide access to finance for refugees & hosting communities and have financial products already in place for lending activities including documenting sharia compliant products and other Refugee financing products available. You will need to appreciate the unique challenges faced by Refugees in financial inclusion.
II. To identify actors and stakeholders that are key for financial inclusion in DAC whilst highlighting their roles.
III. To establish opportunities and barriers that stakeholders/institutions face in providing financial services to Displacement affected community.
IV. Explore and identify Diaspora financing models – exploring the potential for diaspora financing as an alternative financing mechanism for refugees in Kenya. This will cover the enabling actors, expected challenges.
V. To disseminate the report to DRC and key stakeholders in financial inclusion including developing dissemination flier

Scope of Work and Methodology
The consultant will be required to prepare a detailed methodology and work plan indicating how
the objectives of the project will be achieved, and the support required from DRC Kenya.

Deliverables
The consultant will meet the following deliverables:
I. Provide a detailed report of the mapping of FSPs focusing on those interested in providing services to Displacement affected community including refugee financing and sharia compliant products. The mapping should be done at national level (refugee hosting counties) with a specific emphasis to the Garissa and Dadaab context.
II. Provide a detailed report for the identified actors and stakeholders that are key for financial inclusion in DAC whilst highlighting their roles in the financial inclusion.
III. Develop a detailed report showcasing opportunities and barriers that stakeholders/institutions face in providing financial services to Displacement affected community
IV. A short A5 flier with key formal financial service providers identified and proposed for dissemination.
V. Recommendation on 3 FSPs of choice in the Dadaab Context and other refugee hosting counties.
VI. Explore opportunities for partnership between main FSPs and local FSPs especially SACCOs in provision of financial services to displacement affected persons.
The Consultant will provide the documentation by mail, email, USB key/ MS Word, Excel, PowerPoint, PDF.

Duration, Timeline, and Payment
The total expected duration to complete the assignment will be no more than 45 calendar days.
The consultant shall be prepared to complete the assignment no later than 45 days after signing the contract.
1st instalment 20% 2nd instalment 40% Final payment 40 %
Deliverable Upon signing of the contract and delivery of an agreed Detailed Implementation Plan (Inception Report) and a detailed implementation manual including the afore-mentioned components in the ToR Upon provision of satisfactory draft report that meets and respond to components listed in the ToR. Upon DRC Kenya approval of the final report and its dissemination to the DRC key stakeholders in financial inclusion.

Eligibility, Qualification, and Experience Required
Essential:
– Experience working in Displacement affected communities in Kenya

Desirable:
• Eligibility:
– The consultant has the authorisation to work in Kenya.

• Qualifications:
– At least a Master’s Degree in any social sciences, research field or economic inclusion related field
• Experience:

Minimum of 3 years’ experience in refugee economic inclusion work and research preferably within Displacement affected Communities.

Skills and knowledge:
– A solid understanding of Kenya’s social, cultural, financial system and economic context.
– Experience working with Formal financial Institutions in Kenya, especially sharia financing, will be added advantage
– Relevant background in financial inclusion and refugee entrepreneurship.
– Proven track record in conducting similar studies and assessments.
– Ability to structure complex insights into written and visual products that bring out key features and enable decision making.

• Language requirements:
– Written and spoken fluency in English and Kiswahili.

Technical supervision
The selected consultant will work under the supervision of:
• Project Manager- ABLIG II

Location and support
The assignment shall be conducted in Kenya with interest in refugee hosting locations / counties (Garissa-Dadaab, Turkana-Kakuma, Urban Refugees e.g Nairobi etc)
The Consultant will provide her/his own computer and mobile telephone.

DRC Kenya shall provide information on partners and stakeholders in DAC setting.
DRC Kenya shall also organize for any meetings with partners, stakeholders and staff in the field.

Travel
Travel shall be required for this assignment. The Consultant will therefore be expected to arrange transportation, accommodation, insurance and food. The consultant should make adequate provisions for this in the financial proposal.

Evaluation of bids
All bidders will be scored on a scale from 1 – 10 and will be assessed for profile and qualifications (document 1), technical approach (document 2), and similar experience (document 3). Bids will be scored according to the criteria below for the initial screening.

The Financial offer will then be weighed against the technical proposal (cost/ quality)

Based on the initial screening, DRC will invite selected bidders for an interview.
DRC will conduct reference checks from at least 2 previous works as an additional mandatory requirement before contracting.
• Proposals must be submitted as word/PDF/excel files, ideally packaged in a zip folder.
• Proposals must be submitted to the following address tender.ken@drc.ngo with ‘Financial Service Providers Mapping in Kenya’ on the subject line of the email

The consultancy is expected to be conducted between March and April 2025.

Only those shortlisted will be contacted for an interview with the panel.

Please find complete bidding documents in the following link: RFP 323528 PROVISION OF FINANCIAL SERVICE PROVIDERS MAPPING IN KENYA