Micro Enterprise Support Programme Trust (MESPT) is a development organization focused on enhancing Agricultural Productivity, Food Safety, Agricultural Business Development, market linkages, increased Financial Access and Inclusion and Green Transformation within Agricultural sector. MESPT desires to contribute towards creation of green decent jobs and improve competitiveness and socio-economic sustainability among stakeholders and more so the smallholder farmers and SMEs.

The engagement of private sector towards achievement of the desired results within focus thematic areas continues to be critical and calls for concerted effort for support mechanisms. MESPT has taken this role to facilitate both forward and backward linkages and build sustainable partnership to sustainably support the financial eco-system.

Promotion of financial access and inclusion within Agricultural and Green Growth sectors is a critical strategic pillar. This pilar is delivered through Credit & Business Development Department. Key functions of the department includes (i) provision of debt capital to Financial Service providers (FSPs) for on-lending to smallholder farmers(SHFs), SMEs and Farmer co-operatives; (ii) Provision of Capacity and Technical support to FSPs to increase scale of capital supply to SHFs, SMEs and Farmer Co-operatives; (iii) provision of risk sharing mechanisms to mitigate on-lending risk for FSPs; (iv) fundraising to increase scale for debt facilitation; (v) Financing for working capital and productive assets to SMEs and Farmer co-operatives to enhance production capacities; (vi) identification of mutually beneficial partnerships to further the overall mission and vision of MESPT.

In light of the above, MESPT has developed a new strategy for financial access and inclusion. This new strategy calls for new approaches and tools towards credit underwriting, identification of new target clients, engagement of expanded delivery channels, demands for high environmental and social impact and emphasis on sustainability. This has influenced the rewriting of the credit policy and procedures to align to the new circumstances.


“Build a more Prosperous Society”


To provide sustainable business development and financial services to small holder farmers and Agri SME’s in Kenya.

II. STRATEGY FOR FINANCIAL ACCESS AND INCUSION MESPT strategy for Financial Access and Inclusion is influenced by the following:

a) Changing contextual reality where limited financial investments are available for agricultural productivity, food safety, agricultural business development investments. There has been a growing misalignment of financing structure(s) and increased perception of associated risk. With global warming becoming a reality, we have witnessed growing investments in green transformation initiatives and investments.

b) MESPT contribution to green transformation agenda- Alignment to SDG 13 and National Government Green Economy Strategy and Implementation Plan (GESIP), Kenya Climate Smart Agriculture Strategy 2017-2026, Climate Change Act, 2016, National Climate Action Plan 2018-2022, National Climate Change Action Plan (NCCAP 2013-2017) and COP 26 Commitments.**

c) Sustainability- Social and Environmental impact, build resilience, social inclusion, decent job creation and sustainable livelihoods.

III. BACKGROUND AND PURPOSE The financial sector continues to play a critical role in facilitating private sector investments through mobilization of savings and provision of credit facilities. However, with increased liberalization of the financial market, we have witnessed expanded financial space and increased access and inclusion. However, there is sustained debate on the level of responsible business conduct of some of the financial market players. This has resulted to high levels of competition and a drive to profit seeking regardless of the impact created.

Limited access to finance and financial inclusion has been sighted as one of fundamental barriers towards achievement of the desired growth levels of the target smallholder farmers, Farmer Producer Groups, marketing co-operatives and Small and Medium Enterprises (SMEs). The financial service providers have continually deprived the agricultural sector financial investments sighting high risk, uncertainty, lack of markets, minimal margins, uncoordinated support system and lack of verifiable data for decision making. This has further contributed to development of unfavorable financial solutions in respect to high interest rates, mis-aligned structures, lack of long-term investments, lack of flexible and patient capital, and enhanced requirements making access to credit impossible thus contributing to exclusion among vulnerable groups such as women and youth. In addition, there has been limited focus and understanding on the special needs within the sector thus greatly contributing to systemic internal limitations within the FSPs.

It is the desire to play a critical role in financial access and inclusion within the Agricultural and Green Growth space, that MESPT wishes to undertake this consultancy to rewrite its credit policy and procedures to align to the new circumstances. This will result to effective roll out and management of the new strategy and thus positively influence the sector in respect to scaling sustainable finance practices.

IV. OBJECTIVE OF THE CONSULTANCY The objective of this consultancy is to develop credit policy and Credit Operating Procedures for MESPT to ensure alignment to the new financial access and inclusion strategy and best market practices.

V. SCOPE OF WORK The consultant is expected to undertake the following:

i. Hold inception meeting with Management and Board of Trustees of MESPT and align their expectations, form an agreement on approach, work plan and budget.

ii. Conduct an in-depth desk review of all the relevant documents both internal and external to form a clear foundation upon which the credit policy and tools will be revised. Some of the internal documents to be reviewed include; Th institutional strategic plan, The strategy for financial access and inclusion, the existing credit policy and tool among others.

iii. Review the existing and develop new templates such as offer letter, loan application forms, loan appraisal report, financial analysis and scoring,

iv. Review and develop new credit processing and administration mechanisms, decision matrix and risk appetite statements and thresholds.

v. Draft a new Credit Policy Document, Credit operating procedures Manual and Credit tools in line with new strategy for financial access and inclusion.

vi. Make presentations of new credit policy document, Credit operating procedures manual and other tools to Management and Board of Trustees.

VI. EXPECTED CONSULTANCY DELIVERABLES. Deliverables of the assignments include:

1) Milestone 1: Inception report that highlights (i) Agreed detailed work plan with MESPT (ii)Detailed methodology (iii) List of relevant documents to be reviewed

2) Milestone 2:

I. Draft Credit policy Document.

II. Draft Credit Operating Procedures Manual.

III. Draft report on findings from desk review of documents, processes, and systems.

IV. Draft tools (list of tools to be discussed at inception meeting)

3) Milestone 3

I. Final Credit policy Document presented to Management and Board of Trustees.

II. Final Credit Operating Procedures presented to Management and Board of Trustees

III. Final report on findings from desk review of documents, processes, and systems presented to Management and Board of Trustees.

IV. Final Credit tools

VII. METHODOLODGY It is recommended that for maximum value generation for this assignment, the consultant will adopt participatory approach that includes interviews with Board of Trustees, Senior Management, Credit Technical team and (if necessary) review of Navision ERP system, processes and relevant documents.

VIII. REQUIRED SKILLS, QUALIFICATIONS AND EXPERIENCE The consultant must possess the following: – · In-depth knowledge and experience in Microfinance finance, Agricultural finance, Climate/Green finance, Development finance, financial inclusion, Enterprise development and/or Agricultural Value Chain Development.**

· In-depth knowledge and experience in design, development, and analysis of credit policy documents, especially policies sensitive to Agri financing, Green transformation and social inclusion and empowerment of vulnerable groups.

· Demonstrated understanding of concepts for financial and inclusive finance and value chain approaches.

· 3 References for similar assignment for the past 6 years, with contact details.

· Master’s degree in relevant field- (Agricultural Economics, Business Management, Strategy) and 10 years relevant technical experience.

IX. INSTITUTIONAL ARRANGEMENT AND TIMELINES The Consultant will work under the direct supervision of the Credit & Business Development Manager to adapt and deliver the consultancy appropriately to meet MESPT expectations. During his/her assignment, the consultant will be provided with all necessary information. The assignment will be carried out in a maximum of 45 working days. During implementation of this assignment, periodic briefing to MESPT Management and/or Board may be required.

X. PAYMENT PLAN The payment plan to the Consultant will be as follows: –

a) 30% of agreed cumulative budget upon signing of the contract and satisfactory completion of milestone I

b) 40% of agreed cumulative upon satisfactory completion of Milestone II

c) Final 30% of agreed cumulative budget upon satisfactory completion of Milestone III


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