Technical Support and Innovation Services (TSIS)

Through two fully inter-linked sub-components, Component 1 will (i) strengthen Participating Financial Institution (PFI) capacities for innovation, rural outreach and green finance services in Kenya, and (ii) build MSME and smallholder sustainable investment capacities and financial literacy skills particularly tailored to reach women, youth and marginalized groups. Both aspects of the TSIS, supply and demand side, will be embedded into the rural growth strategies of PFIs to foster sustainability and scalability and support the effective use of the resources provided through the project’s Investment Instruments component. This component will be coordinated by co-financing partner organizations.

Sub-component 1.1: PFI Capacity Building for Rural Outreach and Innovation

Under this subcomponent, the capacity of five participating commercial banks, six MFBs and 30 DT-SACCOs will be improved to provide rural and agriculture financial services including products tailored to youth and women. In addition, the capacity of all 41 PFIs will be built to implement and monitor green investment portfolios while operationalizing and strengthening; the environmental and social management systems of the 41 PFIs.

Sub-component 1.2: Business Development Services for Agribusinesses and Smallholders

Under this subcomponent, 1,500 small and microenterprises will receive business development services (BDS) to enable them to submit bankable business plans. In addition,) 50,000 male and female smallholder producers will receive financial literacy training including for preparation of simple business plans appropriate for SACCO/MFB loan applications. The BDS is a key tool for social inclusion targeting of RK-FINFA: minimum of 50 percent women and 30 percent youth are included among all BDS clients.