The Challenge FundCALL 3 IS NOW CLOSED
Financial supportThe Award
The AgriFI Kenya Challenge Fund is looking to award an indicative amount of EUR 18,000,000 to agri-enterprises as financial support. The funds will be allocated through three (3) separate calls for proposals. This is the 3rd call.
Size of financial support
Any financial support requested in this specific Call from AgriFI Kenya Challenge Fund must fall within the following range:
The Challenge Fund will award financial support to cover a maximum of 50% of the total value of the proposal. The balance (i.e. the difference between the total cost of the proposal and the amount requested as financial support) must be financed from matching funds in the form of cash/cash equivalents, credit or equity from external financiers. Eligible food and agriculture projects can seek financing from Equity Bank (Kenya) Limited to reach the required matching funds. In cases where applications are made by consortia the match fund contributions can be provided by any of the consortia members.
Duration of Financial Support
The maximum duration of the financial support will be 24 months from the signature date of the contract. During this period the financial support funds will be disbursed based on a negotiated milestone structure.
For applicants that will be able to access credit line from Equity Bank, the maximum loan tenure will be up to 7 years. The individual projects tenure in this regard will be reviewed on case by case basis as per Equity Bank’s internal policies, processes and procedures and as per the terms agreed upon between Equity Bank Kenya and European Investment Bank. (Refer to the annexed Equity Bank eligibility guidelines for more information on Equity’s credit line)
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Download Application Questions*
*The document above ‘Application Questions’ is for reference only, applications should be made on AfriCUBE.com
Financial supportCalls for Financial Support
Closed on 26th November 2018
Closed on 31st July 2019
Closed on 27th August 2020
The AgriFI Kenya Challenge Fund is aiming to support projects put forward by small and medium sized agri-enterprises with business models that are integrating smallholder farmers/pastoralists into value chains. The agri-enterprises need to demonstrate how they are benefitting smallholder farmers/pastoralists. This may be through the establishment of a new activity1 or expansion of existing activities in specific or all nodes of the value chain. The following are the general and Window specific eligibility criteria for the agri-enterprises:
1For new activity it is intended new investments from existing companies: the call will not fund start-ups
The AgriFI Kenya Challenge Fund is aiming to support projects put forward by small and medium sized agri-enterprises with business models that are integrating smallholder farmers/pastoralists into value chains. The agri-enterprises need to demonstrate how they are benefitting smallholder farmers/pastoralists. This may be through the establishment of a new activity1 or expansion of existing activities in specific or all nodes of the value chain. The following are the general and specific eligibility criteria for the agri-enterprises;
In order to be eligible for financial support, the lead applicant must comply with all the criteria listed below:
General Eligibility Criteria
a) Must be an agri-enterprise duly incorporated in Kenya as a company or a cooperative;
b) Must be compliant with all national and local laws and regulations including but not limited to tax regulation, health and safety and environmental standards;
c) Must be a for-profit entity; not-for-profit organizations and government bodies are not eligible to apply as lead applicants. However, they can contribute to projects as co-applicants;
d) Must provide evidence in the project proposal of current or future integration of smallholder farmers/pastoralists in existing or new value chain(s) in the project’s areas;
e) Must not be a recipient of financial support from AgriFI Kenya Challenge Fund in previous calls as lead applicant
Specific Eligibility Criteria
a) Must have a yearly turnover for the last three years in the range of EUR 200,000 to
b) Must have an asset base of less than EUR 43,000,000 (balance sheet total);
c) Must be willing and able to contribute at least 50% of the project cost through a
blend of cash and cash equivalents, credit or equity from own or third-party sources;
d) The business must have at least three (3) years of uninterrupted operations in
Kenya with focus on eligible actions under the AgriFI Kenya Challenge Fund
e) Must have audited accounts for the three (3) most recent years. The audited
accounts should have been prepared in accordance with International Financial
Reporting Standards by ICPAK accredited accountant.
NB: Applicants may submit their business plans in consortium with other organizations; in this case, the above specific criteria will apply only to the lead applicant however the general criteria should apply to the consortium (Lead and co-applicants). The lead applicant must meet all the eligibility criteria in its own right and will be held accountable for the implementation of the action including the management and accountability of the partner organization [s]. Therefore, applicants are encouraged to carefully vet their partners to ensure they are operating legally in line with the laws of Kenya and have the capacity to fulfil the role outlined in the proposed project. In the case of a Financial Service Provider as a partner, financial support provided by the AgriFI Kenya Challenge Fund cannot go into revolving funds.
Any agri-enterprise will be excluded from participation in this grant procedure if:
a) It is bankrupt, subject to insolvency or winding-up procedures, where its assets are being administered by a liquidator or by a court, where it is in an arrangement with creditors, where its business activities are suspended, or where it is in any analogous situation arising from a similar procedure provided for under national laws or regulations
b) It has been established by a final judgment or a final administrative decision that the agri-enterprise is in breach of its obligations relating to the payment of taxes or social security contributions in accordance with the law of the country in which it is established;
c) It has been established by a final judgment or a final administrative decision that the agri-enterprise is guilty of grave professional misconduct by having violated applicable laws or regulations or ethical standards of the profession to which the agri-enterprise belongs, fraudulently or negligently misrepresenting information required for the verification of the absence of grounds for exclusion or the fulfilment of selection criteria or in the performance of a contract;
d) It has been established by a final judgment or a final administrative decision that the agri-enterprise or its principals have been guilty of fraud, corruption, conduct related to a criminal activity, terrorist related offences or financing, money laundering, child labour or other offenses concerning trafficking in human beings;
e) The agri-enterprise, advisors or principals were previously involved in the preparation of the call documents for the AgriFI Kenya Challenge Fund;
f) Shown significant deficiencies in performance of a contract or agreement financed by the European Union budget which led to termination or penalties;
g) Entering into agreement with other economic operators with the aim of distorting competition;
h) They are in any of the situations listed in section 2.3.3 of the Practical Guide of the European Union.
Financial supportEligible Actions to be Funded
This call will fund for profit initiatives, which result in a measurable positive impact on thousands of smallholder farmers/pastoralists either as customers or suppliers. The nature of actions that can be funded through financial support under this programme include the following:
Initiatives that reach smallholder farmers to improve agricultural productivity including livestock, fisheries, market access, post-harvest handling, food safety or other impact. The initiatives may include (but are not limited to):
- Improving the quality and/or the access to inputs;
- Provision of extension services to smallholder farmers;
- Promoting the production of high value nutritious foods;
- Promoting of climate smart, soil and water conservation technologies;
- Promoting the smallholders’ capacity to comply with quality and standards certification;
- Reducing post-harvest losses and/or improved handling;
- Promoting access to innovative and affordable financial services for smallholder farmers
Initiatives that develop the management, operational and supporting business processes that are directly linked to improving the integration of smallholder farmers/pastoralists within the supply chain of a businesses and improve on their productivity; this may include promoting the adoption of energy/water saving technologies.
The above projects can also be considered for financing through Equity Bank credit line. Refer to the Match Funding page for full details of eligible projects and excluded projects under the Equity Bank’s credit line.
Financial supportENQUIRIES ON THE THIRD CALL FOR APPLICATIONS
A series of webinars will be available for the applicants to provide an opportunity to ask questions and seek clarifications. The schedule for these sessions will be available on the Fund website www.agrifichallengefund.org and through media outlets.
Questions may also be sent by e-mail no later than 7 days before the deadline for the submission of concept notes to email@example.com. The Fund Manager has no obligation to provide responses to questions submitted later. Responses will be published on the website www.agrifichallengefund.org periodically. The final responses will be published 5 days before the call deadline. Individual replies will not be given to questions. It is therefore advisable for applicants to consult the above-mentioned website regularly in order to be informed of the questions and answers published.
To ensure equal treatment of applicants, prior opinion on eligibility of a specific action or detailed responses on the nature of activities will not be given. All answers to questions will be made public.