REQUEST FOR APPLICATIONS (RFA)

USAID KENYA & EAST AFRICA IMARISHA INITIATIVE FUNDING OPPORTUNITY

AGRICULTURE & TEXTILE & APPAREL SECTORS IN KENYA

The USAID Africa Trade and Investment (ATI) Activity is designed to bolster the U.S. Government’s ability to boost trade and investment to, from, and within the African continent. The continent-wide program is USAID’s flagship effort in support of the Prosper Africa initiative and will expand and accelerate two-way trade and investment between African nations and the United States.

Driven by market demand, ATI embraces innovative approaches to achieve its goals. ATI is designed as a small, core set of centrally coordinated technical and institutional support activities, and a large, flexible performance-based subcontracting and grants-under-contract facility designed to support the needs and opportunities that USAID Missions and the private sector identify.

USAID engaged ATI to facilitate private-sector partnerships that deliver development impact, bring value to the private sector, and position the continent for future growth.

Gender inequality is pervasive, with ramifications for jobs, innovation, productivity, GDP growth, and inequality. In Kenya, women are under-represented in the formal sector and earn 58% less than their male counterparts.[1] While many labor-intensive sectors have a predominately female workforce, such as cut flowers, horticulture, textiles, and nut processing (60 to 80% of workers), women are concentrated in the lowest-paying positions due to a lack of advanced skills, training, mentorship, and advocacy. Without adequate training, advocacy, and opportunities, women have little opportunity to advance into well-paying positions. Women's participation in leadership is stymied by widespread social norms, stereotypes, and attitudes around gender.

Unequal access to career advancement is not the only barrier facing Kenyan women. Lack of education and accessible menstrual health materials has led to absenteeism, decreased productivity, financial burden, and even engaging in transactional sex to access menstrual products.[2] New mothers face additional challenges, such as no dedicated space for breastmilk expression at work, despite national policy to the contrary. Many working mothers have no choice but to express their breastmilk manually in a washroom or not work to stay home to breastfeed. With an average birth rate of 3.4 births, working women, on average, lose over three years of earnings and promotion opportunities that have long-term negative impacts on gender inequalities in wealth accumulation.

Research shows that gender-diverse work environments and the integration of women into leadership positions have “bottom line benefits” for companies’ performance. Evidence indicates that firms with higher gender diversity in management had a 35% better return on equity than firms with poor gender equity.[3] Companies with women occupying at least 30% of leadership positions are 48% more likely to outperform companies with less gender diversity.[4] Gender diversity throughout the workforce has been found to increase efficiency and productivity, resulting in increased wages for male and female employees.[5] Diverse teams develop more innovative ideas, have more in common with their end user, and, as a result, produce superior products.[6]

[1] World Bank. Kenya Gender and Poverty Assessment 2015/6, 2018

[2] Phillips-Howard PA, Otieno G, Burmen B, et al. Menstrual Needs and Associations with Sexual and Reproductive Risks in Rural Kenyan Females: A Cross-Sectional Behavioral Survey Linked with HIV Prevalence. J Womens Health (Larchmt) 2015. /

[3] Catalyst, “The Bottom Line: Connecting Corporate Performance and Gender Diversity” (2004)

[4] McKinsey, “Diversity Wins: How Inclusion Matters” (2020)

[5] International Monetary Fund, “Economic Gains from Gender Inclusion: Even Greater than You Thought” (2018)

[6] Harvard Business Review, “Research: When Gender Diversity Makes Firms More Productive” (2019)

The USAID Kenya and East Africa (KEA) Mission has developed the 'Imarisha Initiative''—an activity within its ATI buy-in—that seeks to support private sector firms in agro-processing and textile sectors to increase exports, sales, employment, and/or investment and at the same time expand economic opportunities for women. The Imarisha Initiative will provide grant funding and technical assistance to select firms to grow their business and increase women's employment and pathways for career advancement.

In aggregate, the companies selected for participation must achieve:

• Create better and well paying jobs including new and internal promotions for women[7] (disaggregated further to include age, disabilities, marginalized groups as a target group)
• Increased sales
• Improved productivity, reduced absenteeism, increased retention
• Increased management and career opportunities for women in the workforce
• Reduced systemic barriers to women’s participation in the workforce (including barriers that marginalized women face).

Interested firms can apply to participate. Firms will be selected based on selection criteria below. Selected firms may be currently working with ATI in some capacity or be new to ATI. Firms already working with ATI should propose gender activities that will be integrated in ongoing business growth plans/activities while responding to this RFA. In addition, firms working with ATI who have identified new growth plans that provide opportunities for gender integration can include this in their response. Interested firms must provide workplan and budget for their firms’ growth plan in addition to aligning gender activities. All selected businesses will be expected to co-invest in this activity by providing leverage/contribution in addition to meeting specific eligibility requirements.

This activity targets the following priorities:

Objective 1: Increased trade and investment in Kenya, resulting in significant growth in exports, sales, employment, and investment.

• Increased value-addition, manufacturing, and processing in Kenya
• Markets, jobs, and access to finance created and/or expanded, particularly for youth and women.
• Skills that match investment and market needs developed and cultivated.
• Access to markets and capital expanded and deepened.

Illustrative activities include;

• Enroll new manufacturers and distributors that will act as the anchor users that purchase from producers, manufacturers or sell to retailers.
• Increase production capacity for example through installing new machines, training employees, etc.
• Increase in export sales i.e., establishing new stores.
• Increase in the number of employees.
• Catalyze additional capital from potential investors.

Objective 2: Promoting Economic Competitiveness through Well-Paying, Quality Jobs.

• Strengthens women's capacities to access well-paying and quality jobs.
• Enhance labor and social protections and support for women to compete and safely participate in the workplace.
• Ensure safety and security, including a work environment free from gender-based violence and sexual harassment.

Illustrative activities include;

• Develop and implement mentorship programmes for female employees
• Implement labour and social protection policies for women i.e. maternity coverage.
• Implement a set of goods and services constituting essential health care, including maternity care, that meets the criteria of availability, accessibility, acceptability, and quality
• Strengthens women's capacities to access well-paying and quality jobs
• Enhance labour and social protections and support for women to compete and safely participate in the workplace, including improvements in their internal gender balance of staff, managers, and officers
• Ensure safety and security, for a work environment free from gender-based violence and sexual harassment

Objective 3: Expanding care infrastructure

• Increased private sector investment in the care economy to reduce time barriers and strengthen women's economic security.
• Improve early childhood outcomes by expanding the care infrastructure.

Illustrative activities include;

• Initiatives such as affordable, quality care, whether for children, older adults, sick, or persons with disabilities
• Joint initiatives to open a nearby daycare center, or partner with a local daycare to accept employee children at an affordable fee.
• Establishing, equipping, and running lactation spaces and childcare centers at the workplace
• Wellness programs for parents and guardians
• Implementation of flexible working conditions for working parents 

Objective 4: Dismantle systemic gender barriers

• Adoption and implementation of Gender-responsive policies at the workplace.
• Continuous gender awareness to challenge and shift harmful norms that prevent women's career advancement.
• Expand opportunities to increase employment opportunities and advance women's economic security.
• Strengthen male engagement in the promotion of gender equality and women's economic empowerment in the workplace.
• Improved menstrual hygiene management at the workplace.

Illustrative activities includes;

• Gender analyses to identify and address constraints experienced by women, business practices that adversely affect women, and/or discriminatory laws and regulations.
• Addressing unequal economic and social roles assigned to women compared to men e.g., by ensuring decent working conditions, equal pay provisions, and the provision of affordable, quality care services and access to flexible work arrangements.
• Ensuring women's independent access to assets, including land, capital, and credit.
• Facilitating linkages to other complementary services for men and women, boys and girls, including dialogue initiatives to address discriminatory gender norms.
• Male engagement initiatives seeking to create enabling and safe work settings 
• Menstrual hygiene management (MHM) initiatives

[7] Cumulatively, all the companies under Imarisha initiative should create 3000 better and well-paying jobs for women.

Grant Size and Type: ATI will issue a performance-based grant ranging from $50,000 to $85,000 to establish a partnership with firms which meets the objectives stated in the RFA. Grant value may be limited by the type of grant most appropriate for the enterprise it intends to fund.

Performance-Based Grants: The preferred performance-based grant will be a Fixed Amount Award (FAA) agreement under USAID rules. Payment under FAA grants are made upon accomplishments of predetermined results, referred to as milestones. Milestones are agreed between ATI and the partner prior to the grant being awarded.

Although the FAA is the preferred grant mechanism under this APS, ATI will conduct capacity assessments of all potential grantees in which their mode of award will be determined based on the financial and administrative capabilities of the applicant. Other modalities of award​s​ may include an in-kind grant, standard grant, simplified grant, or a combination of FAA and in-kind grants, but this is dependent on ATI’s determination of the potential grantee’s capacity. 

If ATI’s assessment identifies weaknesses or deficiencies that call into question the applicant’s ability to manage the award, ATI may elect to remove the applicant from consideration under this funding opportunity or select a mechanism more appropriate for the applicant’s current financial, administrative and operational capacity. The applicant will agree to the metrics and verification methods of awards during the development of the full application, giving latitude to the partner on how it will accomplish the agreed objectives. DAI reserves the right to fund any or none of the applications submitted.

Leverage: Applicants must commit to partially fund the proposed activities through matched funding from the grant awardee or leverage new external financing of at least 50% of the total activity amount, which can include but are not limited to equity capital (internal or external) raised, and/or debt capital mobilized from financial providers.

Competitive applicants are those with capability to achieve scale of impact and that leverage larger amounts of private capital into commercially sustainable solutions.

Applications submitted in response to this RFA must include the following information in line with ATI Objectives via the application form:

The application will be evaluated on

1. The technical details of the proposed project leading to increased sales, exports, employment, and/or investment (only for those firms not yet working with ATI under a separate grant) and
2. Details of its plan to increase gender equity in the workplace and women’s economic empowerment.
3. The scale of the results expected to be achieved by the end of the grant term.
4. Estimated cost of the activity
5. Details on the applicant’s company experience in its core business (e.g., textile or agro-processing) and in fostering a gender-inclusive workplace.
6. Confirmation that the company’s leadership agrees to the requirements stated above and is committed to bringing about change in relation to the four objectives above.
7. Specification of at least two gender champions, which should include one male gender champion

The applications will be evaluated according to the evaluation criteria set forth below. To the extent necessary (if the award is not made based on initial applications), negotiations may be conducted with each applicant whose application, after discussion and negotiation, has a reasonable chance of being selected for an award. Award will be made to the responsible applicant whose application offers the best value.

Award will be made based on the ranking of applications by the review panel according to the evaluation criteria and scoring system identified below:

• Application documents must include the following

• Complete Annex A. Application Form. This annex asks for information on the project description, applicant leverage (as applicable), monitoring and results, and other activity information. Responses should be specific, complete, and presented concisely.

• Complete Annex B. Workplan. The implementation plan should be detailed and include tasks, outputs, partners, and responsible persons. It may be no more than three years or extend past March 2026. Monitoring and evaluation efforts must also be included.

• Complete Annex C. Budget and Budget Notes. In the budget, request and explain the key cost items required for the support. Full instructions on budgeting are found in the annex on the first tab called Budget Instructions. You must submit cost verification documents for each budget line item to demonstrate that the amount you budgeted is based on actual cost or market price. 

•  Complete Annex D. Milestone Table. The Activity recommends a fixed amount award (FAA) as the best grant mechanism per the anticipated program description. This means you will be paid an agreed-upon amount for completed milestones. This annex asks you to propose those milestones, means of verification, due dates, and amount per milestone. 

• Applications must be submitted in English

• Page Limitation: Applications should be specific, complete, presented concisely and shall not exceed 10 pages (exclusive of annexes). 

 In accordance with ADS303.6, DAI is required to establish the applicant organization’s nationality to determine its eligibility to receive the requested grant. Complet Appendix A. Grantee Nationality Self Certification Form.

Submission Instructions:

To apply for funding interested applicants must submit all applications (including all annexes) via the RFA-13-USAID KEA Imarisha Initiative (Application Submission). 

Late Applications 

All applications received by the deadline will be reviewed for responsiveness and programmatic merit according to the specifications outlined in these guidelines and the application format.  Applications which are submitted late or are incomplete run the risk of not being considered in the review process.

Please note that while the Grants Team will explain rules and requirements to each awardee, the
following award requirements will apply:

a) Administration of Award

Awards to U.S. organizations will be administered in accordance with 2 CFR 200 Subpart E, ADS 303 and
USAID Standard Provisions for U.S. non-governmental organizations. For non-U.S. organizations, USAID
Standard Provisions for non-U.S. non-governmental organizations apply. Applicants may obtain copies of
the referenced material at the following websites:

• 2 CFR 200 - https://www.ecfr.gov/cgi-bin/text-idx?SID=0a5b7fee6378930cce72564449dd8bb7&mc=true&node=sp2.1.200.d&rgn=div6
• Standard Provisions for US Nongovernmental Recipients - https://www.globalhealthlearning.org/sites/default/files/page-files/french-PLGHA-Standard-Provisions-US-Nongovernment-Organizations.pdf
• Standard Provisions for Non-US Nongovernmental Recipients -                https://www.usaid.gov/sites/default/files/2022-12/303mab.pdf

b) Important USAID Compliance Information

• Certifications, Assurances, Other Statements of the Recipient and Solicitation Standard Provisions - In accordance with ADS 303.3.8, ATI will require awarded grant partners to submit signed copies of required certifications and assurances. ADS 303 may be found at the following website: usaid.gov/sites/default/files/documents/303.pdf.
• Unique Entity ID (SAM) - Effective April 4, 2022, entities doing business with the federal government will use the Unique Entity Identifier (SAM) created in (sam.gov). The Unique Entity ID (SAM) is a 12-character alphanumeric value managed, granted, and owned by the U.S. government. This allows the government to streamline the entity identification and validation process, making it easier and less burdensome for entities to do business with the federal government. All foreign organizations which receive a grant with a value of USD 25,000 and above and all U.S. organizations which receive a grant of any value are required to obtain a Unique Entity ID (SAM) and complete full www.sam.gov registration. Organizations are exempt from this requirement if the gross income received from all sources in the previous tax year was under USD 300,000. DAI requires that grant applicants sign the self-certification statement if the applicant claims exemption for this reason.
• Branding and Marking - All USAID-sponsored assistance awards are required to adhere to branding and marking requirements in accordance with ADS 320. ADS 320 may be found at the following website: https://www.usaid.gov/about-us/agency-policy/series-300/320. ATI’s Branding and Marking Plan allows for co-branding with the grantee and USAID. The Activity must approve all communications materials produced under this grant before printing or publication. Grantees must follow the guidelines set forth in the USAID Graphic Standards Manual and accompanying Prosper Africa Graphic Standards Manual: USAID Graphic Standards Manual and Partner Co-Branding Guide | Branding | U.S. Agency for International Development and Prosper Africa Graphic Standards Manual | Prosper Africa | U.S. Agency for International Development (usaid.gov)
• Environmental Procedures - The impact of USAID’s activities on the environment and environmental sustainability must be a central consideration when designing and implementing an activity. Potential environmental impacts of the grant must be identified prior to a final decision to proceed and appropriate environmental safeguards must be adopted for all activities The grantee must comply with host country environmental regulations unless otherwise directed in writing by USAID. In case of conflict between the host country and USAID regulations, the latter will govern. No activity funded under this grant will be implemented unless an environmental threshold determination, as defined by 22 CFR 216, has been reached for the grant, is properly documented, and signed by the Bureau Environmental Officer (BEO). ADS 200 may be found at the following website: https://www.usaid.gov/environmental-procedures/laws-regulations-policies/22-cfr-216
• Reporting Requirements - Project implementation reporting will be determined based on the planned activities and the delineation of roles and responsibilities. There will be milestone reporting, quarterly progress reports, environmental reporting, and a final grant report. A Performance Monitoring and Evaluation Plan with indicators and targets will also be agreed upon. Grant recipients will be expected to facilitate monitoring during and beyond the life of the grant through June 2026 by making relevant information available to ATI staff.
• Payments and Use of Funds - The Activity will make grant payments in local currency. The grant recipient must use the funds provided exclusively for activities specified in the Program Description. Diversion of grant funds to other uses will result in the cancellation of award and retrieval of funds disbursed to the grant recipient.
• Permitted Uses of Program Income - The grantee will be expected to account for program income in accordance with 2 CFR 200.307. In accordance with 2 CFR 200.307 (e)(2), program income earned under this award will be added to funds committed by ATI and the recipient to the project or program and used to further eligible project or program objectives. Additionally, in accordance with 2 CFR 200.307(e)(3), program income may be used to finance the non-Federal share of the project or objectives.
• ATI funds will not support construction. All construction activities will be resourced through grantee leverage.
• Prohibited Countries - The US Government does not do business with, i.e., purchase goods or services from, prohibited source, nationality, and country of origin. The current list of countries under comprehensive sanctions include Cuba, Iran, North Korea, and Syria.
• Ineligible Goods, Restrictions, and Unallowable Costs - The grant funds provided under the terms of this agreement must not be used to finance any of the following:
  • Goods or services which are to be used primarily to meet military requirements or to support police or other law enforcement activities,
  • Surveillance equipment,
  • Equipment, research and/or services related to involuntary sterilization or the performance of abortion as a method of family planning,
  • Gambling equipment, supplies for gambling facilities or any hotels, casinos or accommodations in which gambling facilities are or are planned to be located,
  • Activities which significantly degrade national parks or similar protected areas or introduce exotic plants or animals into such areas, or
  • Establishment or development of any export processing zone or designated area where the labor, environmental, tax, tariff, and/or safety laws of the country in which such activity takes place would not apply.
  • Pharmaceuticals or pesticides (may be allowable with written approval)
  • Logging equipment,
  • Luxury goods (including alcoholic beverages and jewelry),
  • Establishing or expanding any enterprise that will export raw materials that are likely to be in surplus in world markets at the time such production becomes effective and that are likely to cause substantial injury to U.S. producers,
  • Activities which would result in the loss of forest lands due to livestock rearing, road construction or maintenance, colonization of forest lands or construction of dams or other water control structures,
  • Activities which are likely to have a significant adverse effect on the environment, including any of the following (to the extent such activities are likely to have a significant adverse impact on the environment):
    • Activities which may lead to degrading the quality or renewability of natural resources;
    • Activities which may lead to degrading the presence or health of threatened ecosystems or biodiversity;
    • Activities which may lead to degrading long-term viability of agricultural or forestry production (including through use of pesticides);
    • Activities which may lead to degrading community and social systems, including potable water supply, land administration, community health and well-being or social harmony.
  • Activities which are likely to involve the loss of jobs in the United States due to the relocation or expansion outside of the United States of an enterprise located in the United States, or
  • Activities which the Grantee is aware are reasonably likely to contribute to the violation of internationally or locally recognized rights of workers,
  • Bad debts
  • Contributions or donations
  • Deferred Research and Development Costs
  • Entertainment costs or lobbying costs
  • Fines or penalties
  • Goodwill
  • Interest (Interest on taxes, issuing stock rights, Cost of financing or refinancing capital)
  • Public Relations and Advertising Costs
  • Company holiday parties or picnics
  • Taxes (such as income/profit tax) and PROFIT
  • Bribes
  • Goods or services from vendors or individuals with active exclusions on SAM.gov
  • Goods or services with source, origin, transported through, or nationality from a Prohibited Country – currently Iran, North Korea, Syria, and Cuba.
  • Costs that are being paid for by another donor or funding source, including other US government funding, (i.e., disproportion allocation of costs amongst multiple donors)
  • Costs purchased from vendors, employees, or other sources with Conflicts of Interest.
  • Payments to government officials

Issuance of this RFA does not constitute an award commitment on the part of ATI, nor does it commit ATI to pay for costs incurred in the preparation and submission of an application.  Further, ATI reserves the right to reject any or all applications received.  Applications are submitted at the risk of the applicant.  All preparation and submission costs are at the applicant's expense.