TERMS OF REFERENCE FOR WASTE SECTOR MARKET SYSTEM DEVELOPMENT ASSESSMENT -Ref No: HIHEA/03-2025/PROG

Project Title: Building Inclusive and Resilient Enterprises (BIRE) Project.

Assignment: Waste Sector Market Systems Development (MSD) Assessment for BIRE Project

Location of project: Mombasa, Kilifi, Kwale, Tana River, Kisumu, Homa Bay, Nairobi, Nakuru, Machakos, Makueni, Nyandarua, Trans Nzoia, West Pokot, Bungoma, and Kakamega Counties.

Counties where the assessment is to be conducted: Mombasa, Nairobi, Kilifi, Kwale, Tana River, Kisumu, & Homabay

Type of Applicants: Firm Only

1. Organization Background

Hand in Hand Eastern Africa (HiH EA) is registered in Kenya as a Non-Governmental Organization (NGO) with a mandate to operate within the Eastern Africa region. It is a member of the Hand in Hand Global Network which comprises affiliated organizations that mutually pursue the shared goal of poverty alleviation while supporting poorer communities to create sustainable enterprises and jobs. The organization strives to work with marginalized communities in the areas of economic and social empowerment using a participatory approach aimed at helping people fight poverty and vulnerability. The Hand in Hand (HiH) enterprise and job creation approach is based on a philosophy of self-help, providing training, skills, and support to enable poor people, particularly women and youth, to create and develop enterprises. This provides for a higher level of income for them and their families, which in turn contributes to improved housing and overall improved livelihoods. HiH EA has so far mobilized, trained and is training over 350,000 members (80% women, 40% youth) who have created over 300,000 enterprises and over 450,000 jobs.

To facilitate enterprise creation, HIH uses a 4-step enterprise model that entails seven training modules that starts with set-up or mobilizing self-help groups that act as savings groups, delivering enterprise skills through training, enhancing financial management as well as financial access and providing linkage to broader markets. While entrepreneurship is the strategic focus of HIH, the work is complemented by efforts in thematic areas that increase resilience to climate change, promote advocacy and human rights, and enhance gender mainstreaming, regenerative agriculture and circular economy.

2. About the Project

The Building Inclusive and Resilient Enterprise (BIRE) project, is a four-year project funded by the Embassy of Sweden, and Hand in Hand Sweden (HiHSwe). The overall objective of the project is: to contribute to the well-being of the projects' direct project participants through the reduction of poverty and exclusion among the populations, while the Project Purpose is: to develop viable enterprises that will contribute to moving direct project participants in rural, urban and peri-urban areas of 15 counties in Kenya from poverty to middle-income status as envisaged in Kenya

Vision 2030. This will be achieved by:

a) Enhancing the knowledge sharing and skills development of direct project participants and actors in all aspects of enterprise development and growth;

b) Improving appropriate market chains;

c) Enhancing the resilience of the enterprise to possible shocks;

d) Enhancing the organizational capacity for the implementation and monitoring and evaluation.

The project has two major components: Waste Management implemented in Mombasa, Kilifi, Tana River, Kwale, Nairobi, Homabay and Kisumu Counties, and Agriculture and Services implemented in Machakos, Makueni, Nakuru, Nyandarua, West Pokot, Trans Nzoia, Bungoma and Kakamega Counties. A total of 29,740 (Waste sector—BoP 16,060, Accel 1440, & Agriculture and Services sector—BoP 10,800, Accel-1440) direct project participants are targeted to benefit from the project activities composed of 80% women, 20% men, and 40% among them—youth. It is also planned that 20,818 viable enterprises will be developed sustainably to improve beneficiary average incomes by more than 100% and create 31,227 jobs

2.1. Implementation Strategies

To promote competitive, inclusive, and resilient enterprises, this project will implement several key strategies: a tailored Market Systems Development (MSD) approach, customization of the HiH-4 Step model, a focused gender strategy emphasizing support for women and youth, environmental sustainability, and a Rights-based approach.

1. Context-Specific Market Systems Development (MSD) Approach: A core MSD approach will be applied to entrepreneurs within the waste management sector. The objective is to enhance entrepreneurs' productivity, innovation, and resilience, enabling them to leverage new opportunities, respond to challenges, and independently solve problems. Additionally, the project will build entrepreneurs' advocacy skills, empowering them to influence policy changes related to regulations, taxation, standards, and policies, thereby creating a more supportive business environment.

2. Customization and Deployment of the HiH 4-Step Model: The HiHEA 4-step model has proven effective in building entrepreneurial capacity among BoP participants, transforming them into more informed micro and small enterprises (MSEs). This model will be customized and applied to a new cohort of BoP participants based on their identified needs. It will also be integrated with an existing curriculum designed for accelerator enterprises to address social mobilization, business development, and systemic challenges, thereby embedding MSD principles into the learning process.

3. Gender Focus with Targeted Support for Women and Youth: The project will actively create opportunities for women, youth, and marginalized groups to participate in business activities beyond subsistence levels. It will enhance their access to markets and empower them economically through strategies such as market-based skills development, savings group formation, production aggregation, financial services access, supportive enterprise growth policies, and collective arrangements. These efforts aim to address the specific challenges these groups face in engaging with and benefiting from market systems as producers, entrepreneurs, and workers.

4. Environmental Resilience: While pursuing profit-driven economic empowerment, the project will prioritize environmental sustainability, focusing on reducing and eliminating carbon footprints. It will build the capacity of participants and local actors to adopt sustainable productivity-enhancing technologies, ensuring profitability while safeguarding ecosystems through climate-smart and conservation practices. The project will also enhance participants' risk anticipation and management skills, promote the use of risk-mitigation tools like insurance, and strengthen enterprise and system resilience by increasing connectivity, diversity, and adaptability to future shocks and stressors.

5. Rights-Based Approach: The project will utilize the Rights Way Forward (RWF) methodology to empower participants to recognize and advocate for their rights. This includes enabling them to gain acknowledgment within policy frameworks and access fiscal and monetary tools that support sustainable income generation through MSE development in their respective sectors.

3. Purpose of the MSD Assessment

The purpose of the MSD assessment is to provide a comprehensive analysis of the waste management sector market systems, identify opportunities and constraints, and recommend strategic interventions to enhance the sustainability and profitability of enterprises within 7 counties—Mombasa, Nairobi, Kisumu, Homabay, Kilifi, Kwale and Tana River where the BIRE- Waste Component is being implemented. The assessment will inform the design and implementation of MSD interventions for both the BoP and the Accelerator Cohort entrepreneurs, ensuring they are evidence-based and adaptive to the dynamic market context.

3.1. Specific Objectives of the Market Systems Development (MSD) Assessment for the BIRE Project

• To analyze the market feasibility of identified waste streams including plastics, textile, glass, and organic waste and related value chains to determine potential growth areas, profitability, and sustainability.
• To identify systemic constraints and bottlenecks within the market systems affecting the waste management sector, including gaps in information services, financial access, logistics, and enabling environments.
• To assess the economic and financial viability of respective sub-sectors within the waste streams and value chains, including cost structures, revenue potential, and investment requirements.
• To identify capacity requirements for entrepreneurs and enterprises to operate at optimal market levels.
• To map the actors within the waste management market systems, including producers, intermediaries, service providers, and regulatory bodies, and analyze their roles, relationships, and power dynamics.
• To assess the influence of government regulations, policies, and incentives on market efficiency, inclusivity, and sustainability, particularly in relation to the Extended Producer Responsibility (EPR) provisions.
• To validate the commercial viability of selected value chains and inform the development of business models that enhance the competitiveness, profitability, and resilience of waste management enterprises.
• To support business plan development for beneficiaries, guiding targeted financing and capacity-building interventions tailored to the identified viable waste streams.
• To identify opportunities for integrating women, youth, and marginalized groups into the market systems, enhancing their participation and economic empowerment beyond subsistence levels.
• To explore climate-smart and environmentally sustainable productivity-enhancing technologies and innovations that minimize greenhouse gas emissions and promote biodiversity sustainability.
• To assess risk factors and recommend risk-mitigation tools to strengthen enterprise and market system resilience against shocks and stressors.
• To pilot and evaluate innovations and technologies within the waste management value chains, facilitating adaptive learning and ongoing improvements in market systems interventions.

4. To recommend effective business development services tailored to waste management enterprises, with indicators tracking survival rates, gender inclusivity, income changes, and resilience.

4. Key Considerations

The MSD analysis will be conducted with a focus on the following cross-cutting themes:

• Gender Equality and inclusivity: Address systemic barriers preventing women, youth, and marginalized groups from participating in and benefiting equitably from market systems.
• Environment and Biodiversity Protection: Incorporate strategies to ensure that interventions align with environmental conservation and sustainability goals.
• Human Rights and Advocacy: Uphold the rights of participants and advocate for inclusive and equitable market practices.

5. Scope of Work

The firm will conduct a comprehensive analysis of the waste management sector market systems, identify opportunities and constraints, and recommend strategic interventions to enhance the sustainability and profitability of enterprises in the BoP and Accelerator cohorts within 7 counties—Mombasa, Nairobi, Kisumu, Homabay, Kilifi, Kwale and Tana River where the BIRE—Waste Component is being implemented. The scope of the MSD assessment will include, but not be limited to;

• Analysis of relevant literature, reports, policy documents, and secondary data on waste management market systems.
• Key informant interviews and focus group discussions with market actors, including waste collectors, processors, recyclers, service providers, government agencies, and beneficiaries.
• Conducting a comprehensive market analysis of waste streams and value chains, including market size, demand trends, and competitive landscape.
• Mapping market actors, including producers, intermediaries, service providers, regulatory bodies, and end consumers.
• Analyzing economic viability, cost structures, revenue potential, and investment requirements of different waste streams.
• Assessing the enabling environment, including policies, regulations, taxation, and incentives impacting waste management enterprises.
• Identifying systemic constraints and opportunities within the market systems, including financial access, logistics, information services, and business support services.
• Evaluating environmental sustainability and resilience factors, including risks related to climate change, market shocks, and stressors.
• Providing actionable recommendations for strategic MSD interventions to enhance competitiveness, inclusivity, sustainability, and resilience.

6. Methodology

The firm will be expected to use qualitative and quantitative research methods. The firm will propose in the inception report, an appropriate methodology and will be validated by Hand in Hand EA before the data collection.

7. Deliverables

1. Inception Report – Detailing the approach, methodology, work plan, and data collection tools (within 2 weeks of contract signing).

2. Interim Report – Presenting preliminary findings and insights (midway through the assessment).

3. Draft Report – Comprehensive report including market analysis, stakeholder mapping, value chain analysis, economic viability, and strategic recommendations.

4. Validation Workshop – Presentation of draft findings to key stakeholders for feedback and validation.

5. Final Report – Incorporating feedback from the validation workshop and providing detailed recommendations for strategic MSD interventions.

6. Presentation Deck – A concise presentation summarizing key findings, recommendations, and action points.

8. Ethical Considerations & Quality Assurance

The analysis must conform to International ethical guidelines for research and evaluations. Accordingly, the selected firm will be responsible for safeguarding and ensuring ethics at all stages of the evaluation process. The firm will be responsible for managing any potential ethical risks and issues and must put in place processes and systems to identify, report and resolve any ethical issues that might arise during the implementation of the evaluation.

Consequently, the firm should ensure the assignment is designed and aligned to internationally accepted norms and standards of quality evaluation/research. The firm should also clearly indicate challenges and dependencies that might be encountered and how each will be mitigated, to deliver a credible assessment. All principles of evidence such as voice and inclusion, appropriateness, triangulation, contribution and transparency must be observed in the evaluation process.

9. Qualifications/Competence of the Firm

HiH EA requests firm to submit proposals to respond to this Terms of Reference as outlined above. We expect the consultancy firm to demonstrate the skills and experience outlined below (or equivalent):

• The lead consultant should have a minimum of 10 years’ experience in field research of community projects, including those in the agricultural and waste management sectors;

• The individuals/ team should demonstrate evidence of past relevant assignments in MSD analysis in the waste sector.
• A minimum of a Master’s degree in a relevant field such as Agricultural Economics, Agribusiness, Environmental Science/Management, Development Studies, Business Administration, Waste Management or related disciplines
• Proven Experience in MSD Analysis: At least 5–7 years of experience conducting market systems analyses, value chain studies, or similar economic research in agriculture and waste management
• Sector-Specific Expertise - Demonstrated knowledge of waste value chains, and rural & Peri-urban development in Kenya.
• Experience working with waste management systems, including recycling, composting, circular economy, or waste-to-energy solutions
• Experience in designing or implementing programs based on MSD principles.
• Proven ability to engage and collaborate with diverse stakeholders, including private sector actors, government agencies, NGOs, and community organizations
• Proficiency in MSD frameworks and tools, such as value chain mapping, political economy analysis (PEA), and gender and inclusivity assessments.
• Ability to assess and integrate GSI considerations into the analysis, ensuring the project benefits marginalized groups
• Understanding of waste management solutions, particularly circular economy approaches
• Familiarity with emerging technologies in waste management (e.g., biogas production, recycling technologies)
• Ability to present findings clearly and concisely to diverse audiences
• A strategic mindset for identifying practical, systemic solutions to market challenges
• Proven track record of producing high-quality reports, case studies, and actionable recommendations
• Proven track record in analytical report writing;
• Proven track record on working with digital data collection approaches;
• Proven track record of enumerator selection, training, and supervision and ability to ensure high quality data collection;
• Experience of fieldwork and data collection in urban, rural, and informal settlements along the Kenyan coastline.
• The assessment team must have the capacity to ensure that gender equality is taken into account in all aspects of the evaluation (i.e. design, data collection, analysis and reporting).
• The team should display solid understanding of small, medium and micro enterprises, market systems development, Human rights and advocacy, monitoring and evaluation, gender, value chain and environment, climate change and biodiversity.

10. The proposal content to include;

1. Motivational letter (Max 1 page)

2. Understanding of the Terms of Reference (max. 2 pages)

3. A short outline of the assessment approach, research design, and methodology for the assessment. Max. 3 pages.

4. A proposed process and time frame for the assessment setting out the phases, the number of consultants, their roles and the number of days. Max. 2 pages.

5. The anticipated challenges and dependencies likely to affect the implementation of the assessment and how these should be addressed. Max. 1 page.

6. A description of how to ensure data quality throughout the process/assignment. Max. 1 page.

7. A description of how gender will be mainstreamed throughout the assessment with consideration of how the perspectives of men, women, and youths will be sought in the evaluation process. Max 1 page.

8. A narration of how ethical issues will be mitigated/safeguarded throughout the evaluation process. Max 1 page.

9. A summary of the most relevant skills and experience of the proposed lead consultant and the consultant(s) together with her/his CV showing relevant previous assignments and clients. (Annex CVs separately). Max 2 pages per CV.

10. A detailed fee quote and rationale for the firm and an estimate for the operational costs. Max. 1 page.

10.1. Financial Proposal

The financial proposal must not exceed 2 pages and the budget should;

1. Be clearly broken down and justified including estimated days of working, costs per day, and reimbursable expenses.

2. Be comprehensive and inclusive of all applicable taxes.

3. Indicate terms and conditions of payment

11. Award criteria

Award will be based on best value for money, which is evaluated in the light of the price and criteria related to quality and services (the methodology and the CVs of the firm). The award will be given to the sound proposal reflecting both technical and financial requirements. The evaluation of the quotations will be based on the best value for money, weighing up technical quality (the methodology and the CV of the firm).

Assessment of the proposal

The assessment of the proposal paper will be based on the following criteria:

- Responding to the requests outlined in the Terms of Reference

- Demonstrable experience

Assessment of CV’s

The assessment of the CV’s will be a review of the appropriateness of the proposed firm based on their stated skills and experiences as well as additional criteria outlined above.

Assessment of the Prices

The contractor will have to make provisions for covering all costs associated with the assignment including relevant taxes. Remuneration is based on the submission of agreed deliverables.

Appointment

Shortlisted applicants may be called to interview or requested to submit samples of work.

Management of Firm

The appointed firm will be managed by Hand in Hand Eastern Africa. The firm will make themselves available for weekly coordination meetings with HiH EA throughout the duration of the contract, until the final report is delivered and signed off.

12. Anti-Corruption and Safeguarding

Hand in Hand Eastern Africa strives to fight corrupt practices within its operations and the same is expected of its vendors, contractors and service providers. HiH EA staff are therefore prohibited from accepting any gift/s, consideration or benefit/s of any kind which may constitute illegal or corrupt practices, either directly or indirectly, as an inducement or reward for the award of a contract.

HiH EA and all its employees undertake to create a safe environment for our members and to prevent any form of exploitation or abuse. We are committed to acting in the best interest of our member’s and any willing vendor, contractor or service provider is required to commit and comply with our position on safeguarding.

13. Submission of Proposal Requirement

Electronic submission of EOIs will be made to procurement@handinhandea.org by CoB 21st March 2025 citing the reference number as the subject of the email.

Proposals that arrive late will not be accepted.

All submitted proposals will be treated confidentially.