CONSULTANCY - TECHNICAL ASSISTANCE FOR IMPLEMENTING THE STARTUP BILL, 2022

Mennonite Economic Development Associates (MEDA) invites applications for CONSULTANT/CONSULTANCY FIRM -  TECHNICAL ASSISTANCE FOR IMPLEMENTING THE STARTUP BILL, 2022

MEDA’s work is built on a foundation of Mennonite business roots and faith-based values, within the global context of the UN Sustainable Development Goals. We believe business solutions are effective interventions to address poverty. Through a market-systems approach and strategic partnerships, MEDA enables access to finance and provides business and technical expertise to build transformative agri-food market systems that create decent jobs, allowing traditionally excluded groups to become active participants in a sustainable economy. MEDA welcomes all who share our values and want to join us in our mission. To find out more about MEDA, please visit our website at www.meda.org.

Job Details:

Job Status: Consultancy (Short Term)

Duration of Engagement: 1st December 2024 to 31st March 2025

Location: Hybrid – Kenya (Local (East-African) consultants preferred)

Application Deadline: 22nd November, 2024 @ 5:00pm EAT.

I. INTRODUCTION AND BACKGROUND

The Startup Bill, 2022 is a pivotal framework designed to enhance innovation, sustainable technological development, and employment opportunities within Kenya. According to Disrupt Africa's Startup Ecosystem Report (2022), there were approximately 308 active startups in the technology ecosystem, with many of them being financial technology (FinTech) entities, accounting for 30.2% of all startups in the Kenyan market. From January 2015 to November 2022, at least 242 Kenyan tech startups raised a total of US$1,281,918,200. The report confirms that there is enormous potential for startups in Kenya when operating in a conducive environment that promotes growth. To promote such innovation and ensure startup growth, the Startup Bill, 2022 seeks to regulate the ecosystem to ensure these goals are met.

The Bill aims to provide a framework to encourage growth and sustainable technological development, new entrepreneurship employment; create a more favorable environment for innovation; attract Kenyan talents and capital through:

• Innovation Culture: Fostering innovative thinking and enterprising spirit.
• Startup Registration: Establishing a clear process for registering startups.
• Linkages: Facilitating connections between startups and financial institutions, private sector research bodies, and other relevant entities.
• Support Environment: Providing fiscal and non-fiscal support to startups.
• Regulation and Conduct: Promoting an enabling environment for startup establishment and business conduct.
• Incubation Facilities: Setting up incubation facilities at national and county levels.
• Monitoring and Evaluation: Regularly assessing the legal and regulatory framework supporting startups.

The startups targeted in this Bill are defined as innovative entities legally recognized by the laws of Kenya with strong growth potential and a disruptive economic model. Startups and Incubators are meant to come together under incubation programs to foster the growth of the startups.

II. OBJECTIVES OF THE ASSIGNMENT

The STARTUP BILL 2022 seeks to promote entrepreneurship motivation for startup enterprises by lowering barriers to business establishment, mitigating entrepreneurs' risk, and creating an enabling environment for enterprises to grow and realise innovative ideas to the ecosystem. The aim is to support entrepreneurs in building successful startups through both fiscal and non-fiscal measures. Emphasis is placed on ensuring that these measures are effective at both national and county levels, thereby fostering a cohesive and comprehensive startup ecosystem throughout Kenya. Specifically, this involves:

• Entrepreneur Support: Empowering entrepreneurs to build successful startups.
• Fiscal and Non-Fiscal Measures: Implementing both financial and non-financial support mechanisms to address the barriers to entry. This covers tax breaks, credit guarantee schemes and other incentives.
• National and County Levels: Ensuring implementation of the bill at both national and county levels distinguishing the roles of the two governments. The Bill provides that the Kenya National Innovation Agency shall be responsible for the registration of startups as well as maintenance of a startups database. The Registrar shall be competitively recruited by the Public Service Commission and appointed the Agency.

III. SCOPE OF SERVICES AND SPECIFIC TASKS

The Technical Assistance required in this assignment is intended to address important aspects of the startup ecosystem, ensuring a comprehensive approach to implementation. It entails creating guidelines for startup registration, facilitating investments, making recommendations for an enabling environment, establishing incubation facilities, and instituting continuous monitoring and evaluation systems.

To achieve these objectives, the following tasks will be undertaken:

• Provide support on the development of draft national and county incubation policy framework for the development of the business incubation sector and startup system,
• Facilitate stakeholder engagement towards the development of the incubation policy framework and establishment of partnerships with local and international business incubators,
• Provide support for the design of programmes for the certification and admission of incubators into incubation programmes.
• Provide support in the design of a management information system that will facilitate the management of the Startup registration and admission into an incubation programme.
• Provide support in developing regulations on the Incentives for Startups as per the provisions of the Startup bill.
• Provide support for identifying and leverage lessons from existing online and other platforms for access to information including the establishment and development of startups, existing incubation programmes, access to fiscal and non-fiscal support and for this purpose, keep and maintain a directory of startups and incubator.
• Provide support to drafting guidelines to inform the establishment of mechanisms for pre-incubation of entities and provide training and capacity building programmes to registered start-ups
• Provide support to design mechanisms to enable access to entities from marginalized groups through the use of quotas or mechanisms that match them to unused capacity in existing programmes;
• Provide support to develop facilitative structures that ensure the protection of the innovations of startups at the national and international level for the protection of intellectual property.
• Collaborate with stakeholders to develop clear guidelines and procedures for startup registration.
• Work closely with financial institutions to facilitate investments in startups.
• Provide actionable recommendations to policy formulation to enhance the startup ecosystem.
• Assist incubation centers with content, training and incentive programs that can help them better support and nurture startups particularly agri-food startups and those led by women or focusing on climate change.
• Regularly assess the effectiveness of the legal and regulatory framework.

IV. REQUIRED PERSONNEL

The success of this initiative hinges on the expertise and experience of the personnel involved. The Technical Assistance in implementing this bill needs qualified experts in various fields such as startup development, legal and regulatory matters, and policy formulation and implementation. By engaging specialists with the necessary skills, the project aims to ensure high-quality support and effective execution of the Startup Bill's provisions. This includes:

• Innovation Experts
• Climate Experts
• Gender Specialists
• Legal Advisors
• Policy Implementation Experts
• Financial Analysis Experts

V. CLIENTS' INPUT AND RESPONSIBILITIES

The client's input and responsibilities are active collaboration with relevant government bodies and stakeholders crucial for the successful implementation of the Startup Bill. The client is to provide the required resources and guidelines for successful implementation. This section emphasizes the roles and responsibilities of the clients, including their input and participation in the process. By fostering a collaborative environment, the project seeks to align efforts and ensure that all actions are in line with national and county-level objectives. Below are the responsibilities of the client:

• Mobilization of stakeholders. Ensure the stakeholders involved in the implementation are committed to supporting start-ups.
• Development of reporting and monitoring tools.
• Conduct needs assessment and development of training materials.
• Mobilize stakeholders to form a steering committee that will oversee the implementation.

VI. EXPECTED OUTCOMES

Based on the Terms of Reference (TOR), the expected outcomes of the Startup Bill, 2022, through the proposed technical assistance, are:

Direct Outcomes:

• Enhanced startup ecosystem: The implementation of the Bill will create a more conducive environment for startups to thrive, fostering innovation and entrepreneurship.
• Increased startup registration: The establishment of a clear registration process and a startups database will encourage more businesses to register as startups.
• Improved access to finance: Facilitating connections between startups and financial institutions will increase access to funding, enabling startups to scale their operations.
• Strengthened incubation facilities: The establishment of national and county-level incubation facilities will provide startups with the necessary resources and support to grow.
• Effective monitoring and evaluation: Regular assessment of the legal and regulatory framework will ensure its relevance and effectiveness in supporting startups.

Indirect Outcomes:

• Job creation: The growth of startups will lead to increased job creation, particularly in technology-related and agricultural sectors.
• Economic development: A thriving startup ecosystem will contribute to economic growth by driving innovation and generating revenue.
• Talent attraction: A favorable environment for startups will attract talent from both within and outside Kenya.
• Social impact: Startups can address social challenges and improve quality of life through their innovative solutions.

By addressing the specific objectives outlined in the TOR, the technical assistance will play a crucial role in achieving these outcomes and realizing the full potential of the Startup Bill.

VII. QUALIFICATIONS AND EXPERIENCE

The successful technical assistance team will possess a diverse range of expertise to effectively implement the Startup Bill, 2022. Here's a breakdown of the key areas of expertise required:

• Startup Development: Proven experience in supporting startups through various stages of growth, including business model development, fundraising and scaling operations.
• Legal and Regulatory Matters: A strong understanding of Kenyan legal frameworks and regulatory environments, particularly those impacting startups. Experience in drafting policies and regulations related to innovation and entrepreneurship is highly desirable.
• Policy Formulation and Implementation: Expertise in developing and implementing effective policies and programmes to foster a thriving startup ecosystem. Experience working with government agencies on policy initiatives and implementation would be a significant advantage. The consultant will work directly with two Members of Parliament and report to the Country Director at MEDA Kenya for the underpinned deliverables. The Expert will work closely with the MPs and the PR/Media to ensure alignment with their advocacy goals and strategies.
• Specific Thematic Areas:
  • Innovation: In-depth knowledge of fostering innovation culture and promoting innovative thinking within startups.
  • Climate Change: Understanding of climate-related challenges and opportunities for startups, particularly in developing solutions and green technologies.
  • Gender Equality and Social Inclusion: Expertise in promoting gender equality and inclusion within the startup ecosystem, ensuring increased participation of women entrepreneurs

VIII. EVALUATION CRITERIA

Bids will be evaluated on the basis of the following criteria:

• Expertise technique (40%)
• Proposed methodology (10%)
• Past performance (15%)
• Cost-effectiveness (20%)
• Understanding of the mission (10%)
• Timeline (5%)

Application Template

The Expressions of Interest may take the format below:

A. Contact Information

1. Organization’s Legal Name:
2. Mailing Address:
3. Main Contact Person and Title:
4. Telephone:
5. Email address:
6. Website, if available (Facebook, twitter):

B. Proposal Outline

• Introduction (maximum half a page): Present your understanding of the terms of reference and how your organization or company can meet the requirements. Add a brief explanation of your motivation for partnering with MEDA.
• Declaration of capacity (maximum two pages): Briefly describe the services provided by your organisation or company, in relation to the expertise required by these specifications.
• Technical proposal
  • Detailed methodology (maximum six pages): Describe the proposed approach and methodology for consultancy including startup registration, facilitating investments, making recommendations for an enabling environment, establishing incubation facilities, and instituting continuous monitoring and evaluation systems. The methodology should clearly describe how the data will be collected, the stakeholders involved, and the key results delivered in a timely manner and the integration of GESI and ECC.
  • Work Plan (3 pages maximum): Provide a clear, step-by-step work plan, detailing key tasks, milestones and deadlines, ensuring that final products are completed by assignment timeline.
• Financial proposal (3 pages maximum)
  • Professional Fees: The consultant should provide a breakdown of the professional fees based on the total number of days and shifts required for the engagement. The proposal must specify the estimated per diem rate and number of days for each task, activity or product to be delivered under the project.
  • Fieldwork costs: The proposal must include an estimate of the fieldwork costs. This could include local transportation, accommodation, per diems, or other necessary logistical expenses related to fieldwork.
  • Cost-effectiveness: Pay attention to the fact that the financial proposal is competitive with the services provided. The proposal must demonstrate a balance between cost and quality of services, thus ensuring good value for money.
• CV(s) of the expert consultant**(s):** The CV of the key consultant(s) or firm(s) involved in the assignment should highlight relevant experience and qualifications, particularly in East Africa.
• References: Provide references from a minimum of three and no more than five previous engagements of a similar nature. These references should include contact information and a brief description of the projects carried out in order to demonstrate the consultant's ability to deliver high-quality results.

C.  General Terms and Conditions

1. MEDA reserves the right to reject all proposals that do not meet the requirements and to waive minor irregularities in any proposal.
2. MEDA reserves the right to request clarification on the information submitted and to request additional information on any proposal
3. The content of the selected bidder's proposal will become a contractual obligation if a contract is entered into. If the bidder does not agree to these obligations, its selection may be cancelled.
4. The terms of reference are a working document. Please inform MEDA if there are any gaps/gaps to be filled or additions that would enrich the outcome of this proposal.
5. Please note that MEDA reserves the right to negotiate the final terms of the commitment for the provision of the service.

How to apply: All interested candidates should email their application to jkirui@meda.org and wtinega@meda.org copying jnjoki@meda.org with email subject: TECHNICAL ASSISTANCE FOR IMPLEMENTING THE STARTUP BILL, 2022

For clarifications, email: jkirui@meda.org and wtinega@meda.org

Note:

MEDA may request supplementary information or documentation for determining eligibility for qualification where necessary_._

Application Deadline:  22nd November, 2024 @ 5:00pm EAT.

Only shortlisted candidates will be contacted

Keywords

ConsultancyTechnical AssistanceStartup Bill2022ImplementationKenyaInnovationSustainable DevelopmentMarket SystemsFinanceBusinessAgri-FoodJobsEntrepreneursIncubationRegulationsPolicyMonitoringEvaluation