EXPRESSION OF INTEREST (EOI) FOR FINANCIAL SERVICE PROVIDERS TO OFFER CREDIT FACILITIES TO FARMERS TO ACCESS INPUTS UNDER THE E-SUBSIDY PROGRAMME
MINISTRY OF AGRICULTURE & LIVESTOCK DEVELOPMENT TENDER SEPTEMBER 2024
NATIONAL VALUE CHAIN SUPPORT PROGRAMME (NVSP)
EXPRESSION OF INTEREST (EOI) FOR FINANCIAL SERVICE PROVIDERS TO OFFER CREDIT
FACILITIES TO FARMERS TO ACCESS INPUTS UNDER THE E-SUBSIDY PROGRAMME
TENDER NO. MOALD/SDA/EOI/NVSP/01/2024-2025
1. Background
The Ministry of Agriculture and Livestock Development and other government
agencies are implementing the Bottom-up Economic Transformation
Agenda (BETA) 2022-2027 which has identified five key
areas of focus, Agriculture is one of the key areas with three pillars
namely; food security, reduction of food imports and increased agricultural
exports. In all these three pillars several crop value chains have
been identified for enhancement of their production and productivity.
The government has also identified agricultural value chains as key in
employment and wealth creation. Therefore, increasing agricultural
productivity is key in ensuring food security, surplus products for export
and abundant raw materials for cottage industries in the country.
Agricultural productivity is however hampered by several constraints
among them low use of quality farm inputs especially fertilizer and certified
seeds due to their high prices occasioned by international market
forces. The current government policy in effort to lower the cost of living
is to subsidize production rather than consumption. Consequently,
the government is committed to avail to farmers affordable and quality
fertilizers and other inputs as an intervention to impact on agricultural
productivity. To ensure availability of affordable inputs especially fertilizers
to all farmers, the government is implementing a robust input
subsidy programme whose broad objective is to increase crop productivity
to enhance food and nutrition security, lower the cost of food, and
increase income from sale of surplus production and enhancement of
livelihoods. This will also ensure increased production for exports and
lower quantities of imported agricultural products.
To improve accountability and transparency, the Input Subsidy Programme
is managed electronically where only digitally registered farmers
can access the subsidized inputs. The Programme is funded by the
Government of Kenya (GoK) and is being rolled out in 47 counties
Farmers have been accessing inputs through NCPB stores and contracted
agro dealers country wide and meeting part of the cost while the
Government tops up the subsidy component. Some farmers have been
finding a challenge in financing their part of the cost of these inputs,
thereby negatively affecting the inputs uptake.
To enhance affordability and increase uptake of the subsidized inputs it
is important to facilitate a credit arrangement for the farmers. The State
Department is therefore seeking for financial service providers to offer
credit to farmer to finance their part of the cost of subsidized inputs
under the e-subsidy programme.
2. Objective(s) of assignment
The objective will be to:
a) To contract Financial Service Providers that can provide credit
facilities to farmers to access inputs under the e-subsidy programme
b) To enhance agricultural productivity among farmers through increased
access, affordability and availability of quality agricultural
inputs.
c) To enhance Market access for farmers’ output
d) To Capacity build farmers on financial management and Agronomic
practices
3. Scope of Assignment.
a) The program will operate within the 47 Counties
b) Farmers to redeem their vouchers from the NCPB depots or from
contracted Agro dealers using the e-voucher platform
c) Provide credit facilities to farmers to access inputs at negotiated
interest rates
d) Establish MoUs with County Governments for purposes of supporting
farmers in credit management and market access
e) Follow up with the beneficiary farmers to facilitate repayments
within the grace period of the credit facility
f) Perform training activities to farmers on credit and financial management
g) Facilitate farmers to access output markets
h) Maintain records on farmer repayments and performance as required
i) Provide regular reports as may be required
j) Any other task related to provision of credit facility as may be
given from time to time by the Client
Shortlisting Criteria are:
a) Core Business and years in Business
The firm’s core business will be; capacity to provide credit facility
to farmers within the 47 counties.
b) Relevant Experience
The firm shall demonstrate the ability and capacity to undertake
the assignment (include works in the past, county coverage, client
list and successful past partnerships for the past five years)
c) Technical and Managerial capability of the firm
The firm should demonstrate as having requisite technical capacity
i.e. provide staff profile and organization structure, relevant
equipment, tools etc and managerial capacity to undertake the
assignment.
Key Experts will not be evaluated at the shortlisting stage
Other Qualification and Evaluation Criteria
Preliminary Mandatory Requirements
a) Valid Tax compliance certificate from Kenya Revenue Authority
(KRA)
b) Copy of Business Registration/Certificate of incorporation
c) Valid trading license/Business permit
d) CR12 for limited companies, detailing the list of Directors and
shareholding & copies of Identification Cards (ID) for the listed
Directors.
e) Valid PIN Certificate with VAT obligation.
f) Must have complete legal recommendation from the central
bank of Kenya
g) 3 years certified audited accounts, 2021,2022 and 2023.
h) Submission of one original tender document and one copy document
This EOI is also available in the Government of Kenya Tender Portal
www.tenders.go.ke and in the Ministry’s website www.kilimo.go.ke.
EOI Submission:
Eligible firms are to submit their clearly labelled “EXPRESSION OF
INTEREST (EOI) FOR FINANCIAL SERVICE PROVIDER TO OFFER
CREDIT FACILITIES TO FARMERS TO ACCESS INPUTS UNDER
THE E-SUBSIDY PROGRAMME, TENDER NO. MOALD/SDA/EOI/
NVSP/01/2024-2025”
by hard copy to be deposited in the Tender Box situated on the Ground
Floor, Kilimo House, Cathedral Road so as to be received not later than
11:00 a.m. East African Time on Wednesday 18th September, 2024.
The Envelop should be clearly addressed to:
