SCOPING ADDITIONAL CAPACITY BUILDING AND FINANCE Full Time

Background

DRC has been operational in Kenya since 2005 and has been working with refugee and host communities. DRC protects, advocates, and builds sustainable futures for refugees and other displacement-affected people and communities. It provides protection and life-saving humanitarian assistance; supports displaced persons in becoming self-reliant and included into hosting societies; and works with civil society and responsible authorities to promote protection of rights and peaceful coexistence. DRC is present in Garissa (Dadaab & Garissa), Turkana (Kakuma, Kalobeyei & Lodwar), Nairobi and Mandera counties.

The Ministry of Foreign Affairs of Denmark and Grundfos Foundation have granted funding to a consortium led by DRC, comprising Dan Church Aid (DCA) and Turkana Pastoralists Development Organization (TUPADO) to implement the Pathways to Prosperity (P2P) project. The project intends to promote self-reliance and resilience interventions in Turkana West Sub-County targeting both refugees and the host community population. The project targets both refugees and host community populations. Under financial inclusion, the project seeks to explore alternative financing mechanisms and broader business development services that are more flexible, inclusive, and responsive to the diverse needs of entrepreneurs as they scale and sustain their ventures.

Purpose

DRC Kenya is looking to explore wider entrepreneurship services that would be useful beyond formal finance access to support further business development activities. While access to formal financial services such as bank loans and participation in business training programs have supported many entrepreneurs, these services often remain insufficient for certain businesses, particularly those with high-growth potential, non-traditional models or operating in informal or fragile settings. The purpose of this consultancy is to go beyond a traditional review of financing options and instead conduct a targeted gap analysis, followed by a collaborative design process, to create new, innovative financing programs for businesses in the Kakuma context. This will provide DRC with a strong position to advocate for more relevant and effective financing strategies with partners.

Objectives

The consultant will be responsible for the following key objectives:

1.Conduct a comprehensive gap analysis: Identify what financing and business services are available to entrepreneurs, what is not available, and most importantly, why existing options are not suitable or accessible to them. This will include an analysis of business models, affordability, and the stage and industry of businesses, with a specific focus on sectors like climate, livestock, agriculture, and small businesses.

2. Analyse past funding initiatives: Conduct a stock-taking exercise to understand what happened to businesses that received funding from previous grant or challenge funds, such as KKCF and Spark Fund. The goal is to understand the challenges they faced in continuing their business and securing further investment.

3.Integrate a climate focus: Include an analysis of businesses with a positive climate impact, such as those in the clean cooking and renewable energy sectors, to understand their specific financing needs for expansion.

4.Facilitate a co-design session: Organize and lead a workshop with key stakeholders, including investors, financiers, implementing partners, and refugee entrepreneurs, to present the findings and collectively design new, more suitable financing models. This will ensure the final output is an actionable, unified ecosystem model.

Scope of Work

The consultant will undertake a phased approach with the following specific tasks:

• Phase 1: Gap and Needs Analysis

  • Conduct primary data collection through surveys, focus groups discussion, and interviews with a diverse group of entrepreneurs in Kakuma, categorized by business size and sector.
  • Identify specific gaps in access to finance and business support that are not being met by formal loans or existing training programs.
  • Validate assumptions about why past funding models have not been widely effective or sustainable for businesses.

• Phase 2: Investor and Stakeholder Mapping

  • Map out potential investors and funders who may be interested in financing structures relevant to the Kakuma context, particularly for businesses in the identified priority sectors.
  • Identify and document which investors could be interested in supporting businesses with a climate angle.
  • Develop a tool or a strategy for connecting entrepreneurs with these potential funders.

• Phase 3: Co-Design and Reporting

  • Facilitate a workshop/roundtable session with a diverse group of stakeholders in Nairobi and Kakuma.
  • Lead the stakeholders in a co-design process to develop new financing models based on the findings of the gap and needs analysis.
  • Develop a final, comprehensive report that is not just a study, but an actionable roadmap. The report should include the needs analysis, an evaluation of mechanisms, and a clear implementation strategy for the newly designed financing model

    Expected Outputs

  • The expected deliverables are summarized in the RFP

  Duration, Timeline and Payment

  The consultancy is expected to last for 8 weeks, with final report to be submitted by the 8th week of consultancy work.

  Proposed Composition of the Team

• Enterprise Development and Access to Finance Expert (Team Leader)
• Climate and Green Economy Specialist
• Research Specialist

  Business and Market Systems Analyst

  Eligibility Criteria

• For this assignment, the Consultant should have extensive experience and knowledge in strengthening systems for BDS/FSP in Kenya that supports refugees and vulnerable host communities’ initiatives.
• Among the desirable qualifications for a lead consultant are:
• Master’s degree, or a bachelor’s degree with over five years of substantial experience in Finance, Business, Development Economics, or related field
• The consultant should have a Minimum of 5 years of demonstrated experience working in enterprise development, MSME financing, or inclusive financial systems.
• Proven understanding of the innovation ecosystem in particular innovative alternative financing, challenge funds and accelerators.
• Completion Certificates for similar works from recognized and reputable institutions are an added advantage and/or provide at least 3 references of similar assignments s/he has successfully undertaken in the last 3 years.
• Demonstrated experience in small business development and management, experience with small business financing, market analysis, and market research.
• Strong networking capabilities, with the ability to build and maintain strategic partnerships.
• Proven ability to demonstrate innovative thinking and previous experience working in innovative alternative financing for SMEs and start-ups.
• Experience in designing or working with challenge funds.
• Substantive knowledge of community micro-entrepreneurs and alternative financing modalities to support refugee entrepreneurs.
• Cultural awareness and sensitivity and contextual knowledge of Entrepreneurship Development as a thematic area.
• Proven experience in professional report writing, with the ability to produce clear, concise, and insightful documentation.

  Conditions

• The engagement calls for adherence to the context security guidelines. On the same breadth, DRC does not guarantee security in relation to this engagement, and it will therefore not be liable for any eventuality. Nevertheless, any relevant security updates will be shared when necessary.
• The tasks must be completed within the stipulated time frame.
• This engagement is set to begin in September 2025 with assignment spreading within a period of 2 months. The operations must be within the agreed terms of engagement.
• The engagement calls for adherence to and signing of DRC’s Code of Conduct
• The offer for this engagement should be inclusive of all associated and agreed costs.
• For general information about the Danish Refugee Council, please visit www.drc.dk.

  Reporting lines

• Reporting will be to the Project Manager with provision of regular updates to Economic Recovery Team Leader on the progress of the project as per the agreed-upon schedule.
• For the duration of the engagement, progress update is expected on a weekly and monthly basis to the Project Manager.

  Travel

• The engagement necessitates the consultant to be based or travel to Turkana County during the exercise in understanding the context, markets and establishing possible linkages. As such, the consultant is responsible for making their own arrangements for transportation, accommodation, insurance, and meals, and should include these provisions in the Financial Proposal.
  

  Additional information

• For additional information regarding these terms of reference, please send your questions to [email protected]
• Please find complete bidding documents in the following link: Consultancy

Tagged as: Danish Refugee Council, Kenya