Update: Frequently Asked Questions (FAQs) have been added to the tender. Please see page 29 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.
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 apply a portion of our resources to assist Kenyan enterprises to access business development services in order to obtain finance and investment, as a part of our effort to mobilize $400M in financing over the next five years. This Tender is a call for BAS providers with a proven track record in assisting agribusinesses and related agriculture services and logistics enterprises to access finance and investment to participate in KIM’s Pay-for-Performance subcontracts program, in order to receive success fee payments for the delivery of specialized advisory support in areas listed in this Tender. We intend to hire multiple BASPs through this procurement, as our intention is to create a vibrant network of advisory services providers competing with each other to close deals. This is one of two separate procurements KIM will be undertaking, and is solely for Kenyan BAS providers and should not be confused with a separate tender for FIs.
BAS providers will be eligible to receive success fee commission for providing investment and credit facilitation services under this term of reference to client enterprises located in or working with suppliers/producers in the agricultural value chains of livestock, horticulture, dairy, and located within 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 five counties in the arid lands of Northern Kenya, that is, Isiolo, Marsabit, Turkana, Garissa and Wajir. The activity is to commence in February 2019 and last for a period of 12 months after contract signature with the option for renewal based on performance and availability of funding. Each renewal will be for an additional 12 months up until the end of the KIM project.
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.