TERMS OF REFERENCE
Country of assignment: Kenya
Key contact person: Elikanah Kiarie: Regional Technical Assistance Officer
1. Background on consulting assignment
Oikocredit is an international development finance institution which operates in Latin
America, Asia, Africa and Eastern Europe. It provides micro-entrepreneurs, small
businesses, agricultural cooperatives and other productive enterprises with the
capital they need to expand their businesses and improve their livelihoods. As
Worldwide cooperative society, it promotes global justice by challenging people,
churches and others to share in their resources through socially responsible
investments and by empowering disadvantaged people with credit. The International
Support Office is based in Amersfoort.
Oikocredit has regional office in 34 countries and is active in 69 countries.Oikocredit
has regional office in Kenya that serve the East Africa countries. As a leading private
development organization in the world Oikocredit is a member of different
development Networks that share common values. One such Network is Agri-
ProFocus. The Network promotes farmer entrepreneurship in developing countries.
The Agri-ProFocus office supports this by facilitating effective cooperation between
the Agri-ProFocus members in country programmes and joint trajectories and by
stimulating exchange and learning among professionals and farmers.
In the month of May 2009 Agri-ProFocus organized a workshop in Kenya and
different stakeholders in agricultural sectors were invited. It was agreed during the
workshop that focus should be on a few agricultural sectors, to enable us to build
success on them, before we can move on to other sectors.
The Sub-sectors that were selected include the following:
It was also noted that there are a number of cross-cutting issues that affect the sub-
sectors above and other sectors as well. The key selected cross-cutting issues
include the following:
Farmers empowerment and representation
Youth and gender
Value additions and market access
Financial services for agriculture were unanimously chosen as an essential cross
cutting issue. It is an important challenge to adapt financial services to the needs of
the high risk, but also potentially highly profitable enterprise called smallholder
agriculture. Oikocredit Kenya office and Pamoja Women Development Programme
(PAWDEP), a leading Microfinance Institutions supporting women in farming and
trading, were selected to take a central role in spearheading this cross cutting issue.
To take the process forward Oikocredit and PAWDEP would like to engage the
services of a consultant to study and analyze the five sub-sectors and propose
appropriate ways of financing these Sub-sectors. The financing methodology should
be analyzed both from a wholesaler (Oikocredit) point of view and retailer point of
view (micro-finance or direct financiers to small holder farmers).
2. Objectives of the consulting assignment
The main objective of this assignment is:
a) Conduct a market study on the five sub-sectors mentioned above and to
determine the specific challenges, opportunities and linkages available.
b) Validate financial services available – criteria, funding capability and
c) Secondly, the Consultant should use this information for product development
at both wholesale and retail level.
d) The third objective is to assess the capacity building interventions that can be
made in tandem with financing
e) Potential for Fair trade financing in Kenya.
2. Key activities
To address the above objectives the consultant needs to do the following:
Visit Dairy sector institutions and conduct a financial needs assessment.
These can be Dairy farmer’s co-operatives, Small dairy farmers, or
processors of dairy products.
Visit Coffee sector institutions and conduct a financial needs assessment.
These can be Coffee farmer’s co-operatives, Coffee marketers, and Value
adding institutions in coffee sector.
Visit institutions/ farmers involved in Extension livestock and conduct a
financial needs assessment.
Visit institutions/ farmers involved in production of potatoes/ value additions
and conduct a financial needs assessment.
Visit institutions/ farmers involved in Domestic Horticulture and conduct
financial needs assessment.
Visit farmer organizations for overview of the various sectors.
Identify financing opportunities that exist in all the five sub sectors in terms
of wholesale and retail financiers.
Analyses the financing challenges taking into account the risks in each
Recommend Capacity building needs in different sub sectors that can be
done in tandem with financing.
Propose areas where fair trade can be recommended.
Prepare a comprehensive report i.e. Market Study report capturing the
findings. This report should also capture how the study was undertaken
and recommendations on the way forward.
4. Main Deliverables and Expected Outcome of the assignment:
After this consulting assignment, it is expected the following will happen:
The consultant will prepare and present to Oikocredit and PAWDEP a final
comprehensive market Study capturing the findings and giving concrete
recommendations on the way forward.
The consultant should also advise on possible financial products and services
to be introduced in these sectors
Agri-ProFocus members will understand the financing opportunities as well as
risks in the sub-sectors proposed.
5. Other accompanying documents
The consultant is free to include any supporting documents that may enhance the
Market Study report.
6. Profile of Technical Assistance provider
It is foreseen that the assignment will be carried out by an experienced consultant
with the following qualifications:
A Master Degree in Business Administration/Economics/Finance
Agriculture/Agri-business and other related field.
Must have carried out a similar assignment for other lenders and/or donors.
Experience in market research and analysis of agriculture sectors is critical.
Knowledge on the five sub-sectors is essential.
Excellent analytical skills especially on financial statements are important.
Excellent proposal writing/report writing skills.
Oikocredit and PAWDEP request the consultant to suggest the amount for delivery of
the assignment along with a budget.
8. Forms of payment
Describe here installments and timeframe as connected to deliverables. This will be
further detailed in a contract.
Qualified consultants should respond to this Terms of reference by 20th October