Terms of Reference for a mini baseline survey on credit supply to farmer-based organizations in Kenya and Uganda.

Assessing the availability of viable financial products, policies, and frameworks/Innovations by lending institutions to Farmer Based Organizations to access credit.


The objective of the survey is to assess the extent and viability of existing policies, products, frameworks and financing structures/ models availed by commercial banks for value chain financing to Farmer Based Organizations in Kenya by commercial financial institutions. The survey will mainly focus on outcome 3 ( Financial Service providers (FSPs) develop more responsive products to FBOs), outcome 2 (Improved policies that support the commercialization of FBOs businesses) by analyzing the current practices on the supply side, challenges faced, limitations but also analyzing the policy gaps at the macro and microenvironment (where applicable) that could be limiting reliable supply and uptake of credit facilities to FBOs.

Background/ Introduction to the Innovative Finance for Livelihoods Project.
Most people living in poverty are found in rural areas, globally. In Africa, around 80 percent of agricultural production comes from smallholder farmers, who are mostly rural women. The farmers in Kenya and Uganda are faced with specific challenges. Acknowledging the diversity of challenges faced by Farmer Based Organizations (FBOs) in Kenya and Uganda, We Effect, the Church of Sweden, and Oikocredit are implementing this pilot project focusing on addressing the capacity weaknesses, and potentials of the organizations with an aim of improving the livelihoods of smallholder farmers through FBOs.

This Pilot-project focuses on addressing the capacity weaknesses and potentials of FBOs, recognizing the diversity of challenges faced by Farmer Based Organizations (FBOs) in Kenya and Uganda. The project combines a Loan Guarantee Facility with Capacity Building Initiatives in a unique way. The intention of the pilot project is to address the lack of access to financial services through a set of interventions, involving different types of actors bringing together different funding modalities, development agencies, technical assistance providers, and investors.

The target group in the pilot project is narrowed down to a mix of FBOs that fulfill a set of established criteria and that have not had access to a commercial type of loan previously, but that has the potential of reaching sufficient maturity to access a loan over the project period. To address the reluctance of financial institutions to extend lending to the agriculture sector and Farmer Based Organizations, the pilot will serve as a demonstration and an inspiration to other financial providers and to the Swedish Framework Organization on how to effectively support these organizations. The new knowledge gained in the pilot will also serve to influence policymakers in East Africa so that there is potential for increased lending to FBOs.

Methodology/scope of work
The selected consultant will be tasked with developing a detailed research methodology, including design of relevant tools for use in data collection. The selected research methods should include (but not limited to) a comprehensive analysis of quantitative and qualitative data collected with analysis dis-aggregated by FBO and gender. It is expected that the survey will be carried from among other methods, a review of existing literature on value chain financing in the study areas, with the Consultant maintaining close contact with the We Effect Project Team for guidance and additional information dissemination where necessary.

To obtain in depth information from stakeholders, it is proposed that key qualitative methods include the use of Key Informant Interviews (KIIs) from the earmarked value chain financiers sampled depending on the proposed methodology and indicators being measured) in Kenya and Uganda. Additionally, Focus Group Discussions (FGDs) with other relevant stakeholders (including CSOs, Government officials, etc.) may be incorporated into the methodology as necessary. It is also expected that the Consultant will share preliminary findings in meetings coordinated by We Effect for more information gathering and feedback, and the other to present and discuss the final draft of the survey with relevant stakeholders.

i. An inception proposal that response to the scope of work clarifying methodology,
execution process and work plan.
ii. A comprehensive draft report detailing methods applied, stakeholders contacted,
materials reviewed, and participatory methods applied.
iii. Power point slides/ presentation that will be used to share the findings and
iv. A final report incorporating comments made by stakeholders after the first draft.

How to bid for this assignment.
Interested and suitably qualified consultants shall send their bids by e-mail (a narrative
proposal responding to the TOR objectives and deliverables and a finance quote) to
easternafrica@weeffect.org copying paul.gumisiriza@weeffect.org and
Francis.karwamba@weeffect.org; Quote “VALUE CHAIN FINANCING UGANDA ” as the subject in your e-mail by 10th March 2023 1700hrs. The proposal shall include the following:

The proposal shall include the following:
a) Consultants/Company profile – Current CV detailing recent/past similar assignments.
b) Understanding of the assignment by the consultant
c) Proposed methodology, and approaches including work plan.
d) Financial proposal
e) Annexes: Any other information, which will assist the review team in evaluating the

We Effect explicitly prohibit their staff and consultants that make applications and/or are financed under this contract that, for themselves or others, accept or be promised, request or give, promise, or offer a bribe or other undue reward, remuneration, compensation, undue advantage, or benefit of any kind which may constitute illegal or inappropriate behaviors.

ToR Baseline Credit Supply Kenya

ToR Baseline Credit Supply Kenya


ToR Baseline Credit Supply Uganda

ToR Baseline Credit Supply Uganda