TERMS OF REFERENCE FOR CONSULTANCY FOR THE DIGITIZATION OF VOLUNTARY SAVINGS AND LOANS ASSOCIATIONS (VSLA)

About ChildFund

ChildFund is a child-focused international development organization that works throughout Asia, Africa, and the Americas to connect children with what they need to grow up healthy, educated, skilled and safe, no matter where they are. In Kenya, ChildFund works through 11 Local Partners (LPs) and 2 direct implementing partners spread across 27 counties serving approximately 1.5 million children, families, and community members. We implement programs on Child Protection, Household Economic Strengthening, Early Childhood Development, Education, WASH (Water, Sanitation and Hygiene), Food Security and livelihoods, Emergency Response, Health and Nutrition, Climate Change and Resilience Building.

ChildFund Kenya has developed and Entry and Exit Strategy with graduation approach to lifting communities out of poverty. Financial inclusion is a key component to realizing this goal of poverty graduation to resilience. Currently ChildFund Supports Women and Youth Voluntary Saving and Loans Associations (VSLAs) to mobilize Saving for Economic Transformation and Resilience building of women and youth from Deprived Excluded and Vulnerable (DEV) families through informal savings and loans. However, these VSLAs have not been empowered to adopt technology in their VSLA operations and transactions for ease of linkage with Microfinance Institutions (MFIs) and Saving and Credits Cooperatives (SACCO). The call for a clear graduation pathway has imposed the need for ChildFund to introduce these VSLAs to the cashless economy through the full digitization of their transactions. It is for this purpose that ChildFund Kenya is looking for an experienced service provider who will facilitate the digitization process for at least 300 Voluntary Savings and Loans Associations that are active in the communities where ChildFund Kenya operates.

Specific objectives of the SG digitalization

• Sensitizing Saving Groups on the importance of digital financial literacy and how the process is easy to adapt.
• Training of Saving Group members, Village agents, and Project staff on the platform (this will enable the availability of technical support and speed up the process of onboarding and transaction).
• Onboarding at least 300 VSLAs on the platform and encouraging them to start new cycles on the digital platform.
• Ensure all on-boarded VSLAs are transacting seamlessly using the digital platform.
• Strict supervision and motivation of VSLAs’ technical Agents to ensure timely technical support to the platform users
• Putting in place mechanisms facilitating VSLA members to easily use the platform (proximity technical support, how cash-out fees are covered, motivation of village agents, smartphones, etc.)
• Build the capacity of ChildFund staff, implementing partner staff on the functionality of the digital system.
• Provide learning materials/modules/ booklets for the digital application to users
• Collaborate with trusted local financial institutions to open accounts for VSLAs to preposition them for financial linkages.
• Produce and submit timely VSLAs digital performance reports (monthly, quarterly, semi-annual, and annual) and give designated ChildFund and partner staff access to the platform.
• Putting in place mechanisms facilitating VSLA members to easily use the platform (proximity technical support, how cash-out fees are covered, motivation of village agents, smartphones…)

Geographical Coverage and Scope of The Work

Digitalization purpose: Digitization of all transactions of VSLAs sustaining their operations in selected ChildFund-supported communities in Kenya

Assignment: Digitization of at least 300 Saving for groups

Duration: The digitalization process will be done within a month and ChildFund and Implementing Partners will engage the Service Provider in the follow up sessions with the VSLAs.

Location: Program Areas in the following Counties: Nairobi, Kiambu, Muranga, Marsabit, Isiolo, Kajiado, Samburu, Baringo, Migori, Homabay, Kisumu, Machakos, Kitui, Makueni, Narok, Tharaka Nithi, Laikipia, Nyeri, Meru, Embu, Nakuru, Busia, Siaya, Kisii, Elgeyo Marakwet.

Expected Outputs of The Saving Groups Digitalization

The expected deliverables are summarized in the respective key major points such as

• At least 300 VSLAs and their members are easily using the digital platform.
• Relevant ChildFund Kenya Staff, Local Implementing Partners’ staff can freely manipulate the saving group digital platform, –
• Develop a simple process flow and guide for use by ChildFund and implementing partners.
• Ensure mechanisms of data protection/privacy/confidentiality are put in place with regard to VSLA members information. ChildFund and implementing partners can generate the report from the application platform.
• The VSLAs focal Agents can fix some basic technical issues at the community level.
• The established framework agreement between VSLA users and the local financial institution or bank hosting the money saved for safety.
• The VSLAs reports are digitally collected every month and entered in system.
• The data collected must be validated by technical staff before uploading them into the system
• After validation, the hired company will upload the data into the designed system before activation
• A timely electronic SMS will be generated by the system and sent to the system used for financial transaction notifications that occurred
• Monthly reports will be generated and shared with ChildFund Kenya.

Required Qualifications

The interested consultant firm or company should fulfill the following requirements to be able to compete with this advert.

1. The company should have a Minimum of 3 years of demonstrated experience working in the digitalization of VSLAs.
2. Bidding companies will be invited to present how their platforms function and the options or competitive advantages they offer. They will also present their approach and methodologies to the sustainable digitization of saving groups in rural areas.
3. Completion Certificates for similar works from recognized and reputable institutions are an added advantage and/or pprovide at least 3 references of similar assignments s/he has successfully undertaken in the last 3 years.
4. Having a good presence or previous partnerships with telecommunication companies and financial institutions operating in Kenya.

How to apply

Qualified and interested consultancy firms are hereby requested to apply. The application should contain the following:

• A technical proposal detailing the Background, objectives of the assignment, activities, and deliverables, proposed methodology, timeframe, reporting requirements, work plan, team composition and responsibilities and demonstrating a good understanding of market systems analysis methodology,
• A detailed budget or a Financial Proposal for the activities should be included in the application process (To Include professional and administrative costs and all statutory taxes by the Government of Kenya). The budget should be in Kenya Shillings in an Excel format.
• Organizational/Company profile

The Service provider should also submit the documents as mentioned below along with the proposal.

1. Firm Certificate of Registration (if applicable)
2. PIN/VAT Certificate and Tax Clearance Certificate
3. Company /Organization Profile (if applicable)
4. Company CR12 form (if applicable)
5. CV’s of the other Team members involved.

Note – the whole application should not exceed 10 pages

Incomplete application will be disqualified, all the applications should be sent before close of business on 31st May 2024 to KenyaProcurementCommitee@childfund.org. Email subject: VSLA Digitization Consultancy

Evaluation Criteria

Consultant Experience: The consultancy firm should be having at least 3 experiences in the digitalization of VSLAs with evidence of recognition certificates from system users (at least 3 references having used the system) – 20%

Technical Performance of the platform: Able to demonstrate the superiority of the platform, Marketability of the platform to the VSLA members and ability to collaborate with local FIs to host an account for VSLAs and facilitate the linkage to have access to micro-credits- 50%

Detailed implementation Schedule: Realistic Timelines with clear milestones on how steps will be sequenced, corresponding targets for each step, and when each step will be achieved. (The Gant Chart will be enough) Flexibility to start with projects that have urgent needs for digitization – 30%