SCOPING OF GREEN AND SUSTAINABLE BUSINESS MODELS FOR THE YOUTH IN 14 COUNTIES UNDER THE GREEN FINANCE FOR YOUTH EMPLOYMENT (GFYE) PROJECT 4 views0 applications

1. Background

Financial Sector Deepening Kenya (FSD Kenya) is an independent trust dedicated to the achievement of a financial system that delivers value for a green and inclusive digital economy while improving financial health and capability for women and micro and small enterprises (MSEs). FSD Kenya works closely with the public sector, the financial services industry, and other partners to develop financial solutions that better address the real-world challenges that low-income households, micro and small enterprises, and underserved groups such as women and youth face. Current FSD Kenya funders are the United Kingdom’s Foreign, Commonwealth and Development Office (FCDO), The Gates Foundation, the Swedish International Development Cooperation Agency (Sida) and the International Fund for Agricultural Development (IFAD). To learn more about our work, refer to our website.

The Green Finance for Youth Employment (GFYE) Project is a four-year Project (2024-2027) that is funded by the Ministry for Foreign Affairs (MFA) of Finland in partnership with the National Treasury of Kenya and the International Fund for Agricultural Development (IFAD). The Project is aimed at creating decent jobs for the youth in green value chains operating in rural Kenya, specifically by addressing key constraints for private sector financing that is required for effective youth job creation. The intended impact of the Project is for the rural youth to have increased and resilient incomes through green livelihoods, which is to be achieved through scalable green investment models for the youth and access to sustainable financing and investments for youth and rural enterprises that is youth-led or youth-employing. The Project target low-income rural youth aged between 18-35 years involved in both on-farm and off-farm activities in 14 Counties in Kenya, with at least 50% of the targeted youth being women.

The 14 target Counties are: Meru, Tharaka Nithi, Nyeri, Kirinyaga, Embu, Machakos, Nakuru, Kisii, Siaya, Nandi, Kakamega, Busia, Bungoma and Trans Nzoia.

The project will be implemented through three inter-related components:

• Component 1: Scalable green business models and products for the youth, with a focus on the identification and classification of existing scalable green business models and targeted financial products for young women and men that operate in the Kenyan food system. A key objective of this component is to provide an evidence base and solid framework for the capacity building and financing components of the project (Component 2-3).
• Component 2: Capacity building for green investments for youth employment, including building the capacity of young women and men and youth-led and youth employing MSMEs to access and effectively use green financing. This Component also includes dedicated capacity building on the supply side, i.e. financial institutions operating in rural areas such as SACCOs and MFBs.
• Component 3: De-risking for increased green financing to the project target group through a piloting a “Youth Green Loan Product”, to be implemented by the National Treasury.

FSD Kenya is an implementing partner of the GFYE Project and is responsible for the implementation of Component 1, jointly with other GFYE implementing partners and stakeholders. One of the planned activities under Component 1 is a scoping analysis of commercially viable green and sustainable business models and employment opportunities for the youth, women and persons with disabilities in the 14 target Counties. However, it is not just about identifying viable enterprises but identifying those that are commercially viable and can be financed by participating financial institutions (PFIs) in the GFYE project. As such, the scoping analysis will include an assessment of financial institutions, business and enterprise support organisations that are financing and supporting these businesses. It will also include an analysis of labour market supply and demand-side dynamics to inform the capacity initiatives under Component 2 of the project.

FSD Kenya has already commissioned a separate but complementary analysis of viable and sustainable employment and business models for the youth in the food systems/food value chains of the 14 target Counties under a separate Terms of Reference and contract. As such, the scoping analysis under this Terms of Reference will focus on business models that fall outside the food value chains in the target Counties. Further, the identification of these business models will in part be guided by a draft Green Finance Taxonomy that has been developed to assess and evaluate green investments for the RK-FINFA and GFYE projects.

FSD Kenya is seeking the services of a qualified technical resource (a firm) under a consultancy agreement to undertake the scoping analysis in line with the objective and scope of work set out below.

2. Objective

The objective of the consultancy is to undertake a scoping analysis that identifies and assesses commercially viable, green and sustainable business models and associated employment opportunities—outside the food value chains—for youth, women, and persons with disabilities in the 14 target counties.

For the purposes of this TOR, food system activities include primary production, agri‑input supply, agro‑processing, and food logistics, which are excluded from the scope of this assignment.

3. Scope of work

The scope of work will include the following specific activities:

3.1 Inception and methodology development

1. Review relevant GFYE Project documentation, the draft Green Finance Taxonomy, and draft outputs from the parallel food systems analysis. This review will ensure full alignment of the scoping analysis with the GFYE project objectives, implementation logic and target outcomes, and avoid duplication with other parallel activities/programmes especially the food systems analysis.
2. Propose clear criteria for assessing commercial viability, green impact, job creation potential, inclusivity (youth, women, and persons with disabilities), and bankability.
3. Develop a detailed inception report outlining the analytical framework, methodology, data sources, stakeholder engagement approach, county coverage strategy, and workplan.

3.2 Mapping and identification of green business models

Identify and short-list green and sustainable business models outside food value chains that have potential for scale in the target counties. These could potentially include renewable energy, waste management, circular economy activities, green manufacturing and other environmentally sustainable livelihood and enterprise activities consistent with the draft Green Finance Taxonomy and international best-practice.

Assess selected business models against market demand, business potential, scalability, and environmental sustainability, guided by the Green Finance Taxonomy.

Analyse the potential of these business models to generate decent employment and enterprise opportunities for youth, women, and persons with disabilities.

3.3 Assessment of bankability and financial ecosystem

1. Analyse the extent to which identified business models are currently financed or could be financed by PFIs participating in the GFYE Project and other financial institutions.
2. Assess PFIs’ green financing products, risk appetites, eligibility criteria, and constraints in relation to the identified enterprises.
3. Map business development and enterprise support organisations providing financial and non-financial support relevant to the identified business models.
4. Identify gaps and opportunities to improve alignment between enterprises, ESOs, and PFIs.

3.4. Labour market supply and demand analysis

1. Conduct a labour market analysis for the identified business models, assessing demand for skills and types of employment likely to be created; and supply of labour from the youth, women and PwDs in the target Counties.
2. Identify skills gaps, barriers to entry, and inclusion-related constraints affecting participation in these green sectors.
3. Generate evidence to inform the design of capacity-building and skills development interventions under Component 2 of the GFYE Project.

3.5 County-level and cross-cutting analysis

1. Assess variations in opportunities, constraints, and enabling conditions across the 14 target counties.
2. Identify cross-cutting policy, regulatory, infrastructure, and market constraints affecting the growth and financing of green enterprises*.*

3.6 Validation and stakeholder engagement

1. Engage relevant stakeholders, including PFIs, ESOs, government agencies, private sector actors, and development partners, to validate findings.
2. Facilitate in-person validation workshops or consultations to refine business model prioritisation and recommendations*.*

3.7 Recommendations and actionable insights

1. Provide clear, actionable recommendations to: (a) inform component 1 interventions related to enterprise and market development; (b) guide component 2 capacity building and skills development initiatives and component 3 on de-risking for increased green financing and (c) strengthen linkages between viable green enterprises and PFIs.
2. Propose an indicative pipeline of green, bankable business models suitable for GFYE support.

4. Conduct of the work

This is a unique assignment involving different partners. FSD Kenya will handle all contractual matters including the payments against all the deliverables under this assignment. The consultant will directly report to FSD Kenya, and a primary point of contact will be established at the inception phase of this assignment. All the technical outputs and deliverables from this work will be jointly reviewed by FSD Kenya and other project partners including IFAD and other implementing partners. The consultant will be required to work alongside other technical consultants that are separately contracted to undertake other activities that are complementary to the scoping analysis.

5. Deliverables

The consultant is expected to deliver the following specific outputs:

1. An inception report, with a methodology, diagnostic tools as specified in section 3.1 under the scope of work, and the work plan. The inception report should not be framed in the traditional way of repeating what is already highlighted in the TOR but should instead outline a clear and well-thought-out delivery plan including identifying issues that need to be agreed on from the outset.
2. An interim report: Comprehensive assessment of green and sustainable business models outside food value chains; analysis of bankability, financial institutions, ESOs, and labour market dynamics, and County-level and cross-cutting insights.
3. Validation presentation and workshop outputs: Presentation of key findings and preliminary recommendations to stakeholders and summary of feedback and validation outcomes.
4. A final report, reflecting revisions made following comments from the project partners and the stakeholder validation workshops. It should include a clear prioritization of business models and action-oriented recommendations aligned with GFYE Component 1, 2 and 3.
5. Executive summary/policy brief: A concise, decision-focused summary highlighting priority business models, financing considerations, and employment opportunities for youth, women, and persons with disabilities.

6. Evaluation criteria

This procurement will be conducted as a combined Expression of Interest and invitation to tender process. Evaluation will be undertaken in two sequential stages. Only bidders that meet the minimum requirements under mandatory requirements will have their proposals evaluated.

FSD Kenya will examine the applications to determine completeness and sufficiency in the technical and financial proposal. Applications will be evaluated against the criteria in the tables below.

How to apply

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