Research on Systemic Barriers towards Access and Usage of Housing Finance in Kenya

1.Background and context/ Assignment summary

In conjunction with its partners; AMFI-K, and KMRC, HFHI-TCIS is seeking to engage a company/consultant to carry out transparent and objective research to identify the systemic barriers preventing access and usage of housing finance in Kenya.

2.Purpose

In conjunction with its partners; AMFI-K, and KMRC, HFHI-TCIS is seeking to engage a company/consultant to carry out transparent and objective research to identify the systemic barriers preventing access and usage of housing finance in Kenya.

3.Objectives

1. Perform a holistic assessment of the housing finance market. This includes;

• all the market players (government and non-governmental agencies, financial service providers and non-financial providers that play a bridging role in access to housing finance)
• current housing finance products available catering to various customer segments (stand-alone products, tagged along products and undefined housing products),
• current and future financial needs for other housing finance value chain actors (Micro Small and Medium Enterprises (MSMEs) and developers)

2. Unpack the demand and supply side housing finance needs, challenges and opportunities as well as assessing the support functions available to promote affordable housing finance;

3. Review existing regulations, policies and laws that support and hinder housing finance;

4.Give recommendations on opportunities to address the housing finance barriers in specific sectors that will bring impact to the market in the short, medium and long term;

5. Identify potential investment opportunities in housing finance that will help the supply side in accessing and providing capital/investments in housing finance initiatives within the supply chain.

4.Scope of the Consultancy

The selected company/consultant must undertake the following activities:

• Market Analysis
• Identification of Systemic Barriers
• Provide detailed recommendations
• Research Dissemination

4.1 Duration of the assignment : 3 months

5. Key deliverables/ output and deadlines.

1. Inception report (2 weeks after contract signing)

• Prepare an inception report detailing on how the company is planning to undergo the research. This should include deliverables, methodology and work plan
• Proposed structure for the supply and demand side assessment
• Detailed work plan and proposed methodology (sample design and market survey instruments), to respond to the objectives of the research

2. Market Analysis Report (2 months after delivery of inception report)

• Supply-side assessment: all the financial and non-financial service provides in the market that offer housing finance solutions to the public and housing value chain actors (SME’s), detailing available products/solutions related to housing finance in the market, and possible indications of accessibility requirements (KYC/due diligence) and cost structures
• Demand-side assessment: providing detailed insights on the current behaviours, uptake, usage and beneficiary needs of housing finance products/solutions as well as challenges, barriers and opportunities
• Regulatory and policy assessment: clearly identifying gaps in the regulatory landscape towards provisioning of affordable and appropriate housing finance products/solutions in the market
• Market assessment: providing investment/financing landscape and needs for the housing value chain actors (SME’s) including the current investment models/approaches

3. Draft report (2 weeks after delivery of market analysis report)

• A draft report detailing the systemic barriers identified and recommendations on how to address them to bring the impact anticipated.

4. Final report (2 weeks after receiving comments on the draft report)

• Final report on findings and recommendations taking into account all the comments that would have been shared in the Draft report

6.HFHI Responsibilities

HFHI shall provide the following support towards the consultancy

• Provide financial resources for the research
• Provide office space (if needed)
• Through its partners, provide support to ensure the research is done appropriately and the right players/stakeholders are available

7. Expected profile of the consultant (s)/ Firm

• Demonstration of practice and results in entrepreneurship and inclusive economic development
• Clear demonstration of multistakeholder engagement
• Demonstration and understating of the Technical Vocation landscape and operation in Kenya
• Understanding of the housing sector is an added advantage
• Good communication and interpersonal skills
• Fluency in English and a common local language spoken in rural Kenya
• Outstanding written and verbal English communication skills – in particular ability to write clearly, succinctly and engagingly reports
• Facilitation skills, being able to articulate the participation of diverse stakeholders in the skills upskilling sector in a meaningful way.
• Excellent computer and information and communication technology skills
• Ability and aspiration to learn fast, be effective in a team and autonomously, and be challenged. Must be willing to travel to project locations around the country of operations and regionally

8.Evaluation process

HFHI will evaluate the proposals and award the assignment based on technical and financial feasibility. HFHI reserves the right to accept or reject any proposal received without giving reasons and is not bound to accept the lowest or the highest bidder