PROVISION OF BANKING SERVICES FOR MAINTENANCE OF RURAL CREDIT GUARANTEE SCHEME (R- CGS) BANK ACCOUNT(S) FOR RURAL KENYA FINAN- CIAL INCLUSION FACILITY (RK-FINFA)

THE NATIONAL TREASURY & ECONOMIC PLANNING TENDER MARCH 2024 

REQUEST FOR EXPRESSIONS OF INTEREST (REOI)
REOI NO. RK FINFA/EOI/NCB/02/2023-2024

The Government of the Republic of Kenya has received financing from the International Fund for Agricultural Development
(IFAD) towards the implementation of the Rural Kenya Financial Inclusion Facility (RK-FINFA) project and intends to apply
part of the proceeds under the loan to implement the Rural Credit Guarantee Scheme (R-CGS) Rural Investment Instrument.
The R-CGS is designed as a sustainable financing vehicle which can utilize resources from the Government and from
interested international financiers to unlock private investment into Kenya’s agricultural and agribusiness sector at attractive
market terms through Kenyan financial institutions.
The use of any IFAD financing shall be subject to IFAD’s approval, pursuant to the terms and conditions of the financing
agreement, as well as IFAD’s rules, policies and procedures. IFAD and its officials, agents and employees shall be held harmless
from and against all suits, proceedings, claims, demands, losses and liability of any kind or nature brought by any party
in connection with the Rural Kenya Financial Inclusion Facility (RK-FINFA) project.
In the implementation of the R-CGS subcomponent, RKFINFA is required to deposit credit guarantee funds of about Ksh
2billion with a commercial bank acceptable to IFAD and the Government. The deposit shall be in the form a competitively
rewarded bank account(s). The duration of the bank account(s) shall be in line with the Project closure date of 31 December
2028 or as otherwise advised. The estimated Ksh 2 billion is for the Project’s life ending 31 December 2028. For the
said bank accounts and duration, RKFINFA reserves the right to determine account(s) balances and tenure. There shall be
no limitation to GoK (RKFINFA) closing the bank account(s) as and when may be demanded.
The National Treasury through RK FINFA intends to select a commercial bank for its Rural Credit Guarantee Scheme Bank
account
This Request for Expressions of Interest (REOI) follows the General Procurement Notice that appeared on the IFAD website
and on UNDB on 1st March, 2023 and on MyGov newspaper on 28th February, 2023.
The National Treasury, Rural Kenya Financial Inclusion Facility (RK-FINFA) project (“the client”) now invites eligible
Financial Institutions (“Banks”) to indicate their interest in providing the services. Interested Financial Institutions should
provide information demonstrating that they have the required qualifications and relevant experience to perform the services.
Interested Financial Institutions should fill the template for Expressions of Interest found at the following links;
www.treasury.go.ke and www.tenders.go.ke and send it to the address indicated below.
The attention of interested Financial Institutions is drawn to IFAD’s Anti-Money Laundering and Countering the Financing of
Terrorism Policy (https://www.ifad.org/en/document-detail/asset/41942012) and the Revised IFAD Policy on Preventing
Fraud and Corruption its Activities and Operations (www.ifad.org/anticorruption_policy). The latter sets forth IFAD’s
provisions on prohibited practices. IFAD further strives to ensure a safe working environment free of harassment, including
sexual harassment, and free of sexual exploitation and abuse (SEA) in its activities and operations as detailed in its IFAD
Policy to Preventing and Responding to Sexual Harassment, Sexual Exploitation and Abuse (https://www.ifad.org/en/
document-detail/asset/40738506).
The Financial Institution shall not have any actual, potential or reasonably perceived conflict of interest. A Financial Institution
with an actual, potential or reasonably perceived conflict of interest shall be disqualified unless otherwise explicitly
approved by the Fund. A consultant including their respective personnel and affiliates are considered to have a conflict of
interest if they a) have a relationship that provides them with undue or undisclosed information about or influence over
the selection process and the execution of the contract, b) participate in more than one EOI under this procurement action,
c) have a business or family relationship with a member of the Procuring Entity or its personnel, the Fund or its personnel,
or any other individual that was, has been or might reasonably be directly or indirectly involved in any part of (i) the
preparation of this REOI, (ii) the shortlisting or selection process for this procurement, or (iii) execution of the contract.
The consultant has an ongoing obligation to disclose any situation of actual, potential or reasonably perceived conflict of
interest during preparation of the EOI, the selection process or the contract execution. Failure to properly disclose any of said
situations may lead to appropriate actions, including the disqualification of the consultant, the termination of the contract
and any other as appropriate under the IFAD Policy on Preventing Fraud and Corruption in its Projects and Operations.
A Financial Institution will be selected in accordance with the Quality- and Cost-based Selection (QCBS) method set out in
IFAD’ project procurement handbook that can be accessed via the IFAD website at www.ifad.org/project-procurement..
The shortlisting criteria are:
• Licensing and compliance status: Bidders must be a commercial bank holding a valid banking license from the
Central Bank of Kenya (CBK) as at the date of bid submission.
• Interest Rates: the interest rates quoted by different banks will be compared to determine the highest potential return
on R-CGS deposits. RKFINFA preference is on the highest returns on the R-CGS deposits
• Reputation and Stability: The bank should be in good regulatory standing with CBK. Bidders are encouraged to attach
most recent audited annual report under this criterion.
• Customers Deposit: Minimum customers deposit of Kenya Shillings 200 Billion required
Any request for clarification on this REOI should be sent via procurement.rkfinfa@treasury.go.ke to the address below
not later than 03.04.2024 at 5.00 p.m. Kenyan Time. The client will provide responses to all clarification requests by
05.04.2024, 5.00 p.m. Kenyan Time.
Expressions of interest must be delivered in written form using the forms provided for this purpose.
Completed Expression of Interest documents enclosed in a plain sealed envelope clearly marked “REOI for Provision of
banking services for maintenance of Rural Credit Guarantee Scheme (R- CGS) Bank Account(s) for Rural Kenya Financial
Inclusion Facility (RK-FINFA)” and addressed to: –

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