terms of reference kenya institute of bankers

TERMS OF REFERENCE
KENYA INSTITUTE OF BANKERS – STRATEGIC CAPACITY ASSESSMENT
1. The Consultancy
Kenya Institute of Bankers (“KIB”), with financial support from Financial Sector Deepening Africa
(“FSDA”) wish to identify and contract a consultancy firm (the “Consultant”) to carry out a strategic
capacity assessment of the Kenya Institute of Bankers (“KIB”) and its training programmes in banking and
financial services (the “Services”).
KIB and FSDA will jointly be involved in the procurement process of the Service provider but the
contract will be between FSDA and the service provider. However, FSDA is in the process of being
established as an independent legal entity in Kenya. Until this happens, it operates as a division of FSD
Kenya (“FSDK”) and is subject to FSDK’s procurement rules. The Consultant will therefore initially be
contracted by FSDK, with the contract transferring to FSDA following its incorporation.
2. Background
2.1.
FSDA- A Pan African Financial Sector Development Programme
FSDA is a financial sector deepening trust (FSD). There are currently seven FSDs operating in Africa (in
Nigeria (EFInA), Kenya, Tanzania, Rwanda (Access to Finance Rwanda), South Africa (FinMark Trust),
Zambia and Uganda (Financial Sector Inclusion Programme Uganda)) and one in development
(Mozambique).
FSDA aims to support financial sector development across Sub-Saharan Africa, including in non-FSD
countries, by encouraging skills development and the transfer of knowledge (e.g. research, business
models, policy approaches etc.) across borders, and by building the capacity of financial systems in
other ways.
FSDA has recently funded research exploring (1) the extent to which the financial industry in the East
Africa community and Zambia, recognising the commonly shared problem of skills gaps in the industry,
is coordinating itself to address those skills gaps; and (2) the extent to which formal training initiatives,
public and private, are providing appropriate and effective training that addresses the skills gaps. In the
context of this research, FSDA interacted reasonably extensively with KIB and other industry
stakeholders.
FSDA’s initial funding is from the UK’s Department for International Development (“DFID”).
2.2.
KIB The Kenya Institute of Bankers
The Kenya Institute of Bankers was established in 1979 in collaboration with the Chartered Institute of
Banker (CIB) London, The Central Bank of Kenya (CBK) and the Kenya Bankers Association (KBA). It was
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incorporated under the Societies Act (CAP 108 of the Laws of Kenya) in 1990 and replaced CIB as the
provider of banking education and training in Kenya.
KIB is a membership-based organization made up of corporate and individual members. It currently has
47 banks as corporate members with their employees as individual members. Some of the member and
non-member banks have over 288 branches in the East African Community, South Sudan and the rest of
Africa. KIB has a governing Council represented by corporate members from the banking and Finance
Sector. The mission of KIB is to promote best practice in the acquisition of professional banking
education and training in Kenya to ensure members are continuously equipped with the necessary skills
and competencies and are ethically compliant in discharging their duties. The vision of the Institute is to
be the first choice for every bank/financial institution in the acquisition of Banking Education and
Training in Kenya.
2.3.
KIB’s mandate and its response to recent developments in the banking and financial services
industry
The key mandate of KIB is to:
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2.3.1
Facilitate banking education and training
Certify professional examinations for the banking fraternity and other non-bank financial
institutions through the supervision of its Academic Board
Promote ethical conduct and best practice in banking
Promote Continuing Professional Development within the industry; and
Strengthen its institutional legislative framework through which it should operate effectively and
again re-align its products to the needs of industry in view of the following.
KIB’s programmes and services
KIB is currently running the following programmes:
Banking education:
This programme is offered according to changing needs in the sector.
Originally the services targeted unemployed graduates of secondary education level who were awarded
certificates in banking and financial services (CBFS). Those who passed and were awarded CBFS were
allowed to register for diploma and qualify for Associate of the Kenya institute of Bankers (AKIB). The
demand for these qualifications began declining when banks switched to hiring graduates. KIB has
introduced products targeting those already employed in banks and financial service institutions. The
CBFS has been changed to Diploma and the AKIB changed to Advanced Diploma.
Banking skills upgrading (modular) curriculum: This programme is designed to give a sound
theoretical and academic background in various skills in banking based on specific competencies
required in each subject or banking task. The theoretical background is later reinforced through tailored
practical and theoretical training seminars. The programme comprises three modules: Module 1- targets
clerical cadre staff in domestic and international departments who perform clerical duties and handle
banking products; Module 2- targets supervisory cadre staff handling credit management, domestic and
international banking operations and financial reports; Module 3- targets middle level and senior
managers who head branches and departments, conduct in-house training, staff appraisal, management
of operational risk and treasury.
Degree-linked programmes:
These programmes are offered through partnering with various
universities so that those with the AKIB diploma and who wish to pursue degree programmes are
exempted in certain units considered adequately covered in the KIB courses. Such an arrangement exist
with the Nairobi-based United States International University (USIU-A).
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Training and Continuous Professional Development (CPD):
KIB prepares a calendar each year
indicating the available training programmes each month delivered through 3-4 day seminars. The
training is delivered by contracted professionals who are largely qualified and practising bankers.
Proposed programmes: Arising from the assessment of the changing needs of the industry, the Institute
plans to introduce post-graduate level diplomas. These will be designed as revitalised forms of the
current AKIB advanced diplomas targeting graduate employees who did not study in-depth the subjects
to be developed and those who did not study banking as a subject at the university. The diplomas will
be pegged at an appropriate post-graduate professional depth, be practically-oriented and relevant to the
banking and financial services industry. They will be progressively offered in Parts I and II and will be
used as a basis for hiring and career progression in the banking industry.
2.3.2
KIB’s institutional re-engineering
KIB has started the process of institutional re-engineering and taken the following steps:
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Drafted the KIB Bill 2014 which will change its status from a membership association to a body
corporate with perpetual succession.
Drafted a Banking Code of Conduct with the overall objective of regulating and ensuring strict
adherence to best banking practices and strong commitment to ethical and professional
standards in behaviour in the banking industry for corporate and individual members.
Designed an e-learning and training infrastructure which is conceived as a strategy to deliver
education and training packages to trainees in Kenyan counties and bank branches in Kenya
and the East Africa region.
Designed an institutional performance based model.
3. Objectives and scope of the Consultancy
3.1
Objectives
The primary purpose of the consultancy is to:
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Carry out an institutional capacity assessment of KIB in light of its institutional re-engineering
and demand from financial industry. This should include identification of areas of vulnerability
and specific recommendations on how these can be solved;
Consider KIB’s future role, proposing an imaginative vision for the institution that is both
consistent with its current mandate and realistic in light of the resources that are likely to be
available to it within reasonable expectations;
Make recommendations of how KIB could strengthen capacity to meet its current and future
needs; and
Propose a road map for the capacity strengthening process including monitoring indicators.
The Services will therefore synthesise a traditional institutional capacity assessment – determining to
what extent the institution’s resources and structures, and the way it performs its functions, measure up
to what is expected of it as regards its legal mandate and the expectations of its stakeholders - with a
strategic visioning process that re-purposes KIB towards a modified, but enhanced, role in the future.
3.2
Scope
3.2.1
Assessment of KIB capacity to execute its mandate
The Consultant will be required to:
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Develop a thorough understanding of the mandate and functions that KIB currently performs;
Identify what key capacities already exist and what additional capacities may be required to
efficiently and effectively execute the mandate and functions of the Institute. This will involve
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an analysis of existing capacities against desired capacities which should generate an
understanding of the Institute’s assets and needs; and
Provide recommendations which should include a road map on how the Institute’s capacity
should be strengthened taking into account the resources required to meet its future needs.
Specifically, the Consultant is expected to recommend strategies to overcome capacity gaps and
suggest ways in which the effectiveness of capacity building measures can be monitored over
time with concrete monitoring and evaluation indicators.
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3.2.2
Assessment of KIB’s organisational structure
The Consultant is expected to assess the current organisational structure in terms of:
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Effective facilitation of service delivery to customers
Management committees
Hierarchies and chains of command
Effective control of management processes
Governance division of labour and responsibilities
Channels of communication
Relevance to the current mandate and external context
Specifically the Consultant should identify vulnerabilities in the organisational structure and recommend
a sustainable structure for current and future institutional activities.
3.2.3
Assessment of KIB’s capacity to execute its mandate
KIB has put in place a number of products and services (see section 2.3.1). The Consultant will be
required to assess KIB’s current strategy of marketing its products and services, its success and failures.
The consultant is expected to use appropriate tools including SWOT and stakeholder analysis to guide
and inform recommendations for KIB’s future marketing strategy.
3.2.4
KIB’s institutional re-engineering
The Consultant is expected to get thoroughly acquainted with the Institute’s re-engineering process
outlined in section 2.3.2 and provide value-added critical review of the process.
4. Research method
The scope of research requires the consultant to employ sound qualitative and quantitative research
approaches that should include, but not limited to:
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A desk review of relevant documents including (but not limited to) legal and governance
documents (including the draft 2014 KIB Bill and proposed code of conduct), financial
accounts, current strategic plan, recent research funded by FSDA and carried out by the
Parthenon Group, Dalberg Global Advisors and others; KIB curricula.
Surveys of banking and financial institutions training needs and products and visits to a sample
KIB branch office.
Focus group discussions with key respondents, including interviews with KIB CEO and senior
management, Council and Board members, external stakeholders (government, financial
service industry).
Interviews, administered via structured questionnaires, with key managers and with a
significant sample of other staff members and alumni.
Insights from selected international markets (e.g. Singapore, UK, India) to illustrate different
governance/management approaches, best practice, revenue models etc.
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A survey of internal and external assessment of KIB, both as an organisation and as a provider
of training and qualifications. Respondents should include KIB current staff and alumni and
financial service industry HR managers.
Workshop/strategy day to validate findings and recommendations.
5. Deliverables
The deliverables under this contract are as follows:
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An inception report, to include:
o a thorough understanding of the assignment including a preliminary overview of KIB
o compelling conceptual framework for the analysis
o draft interview and observation guide
o draft structured questionnaire
o a detailed work plan of how the research is to be accomplished
o a list of required documentation that the Consultant will need from KIB in order to
carry out its work
An interim report, in Word and PowerPoint format, to include initial findings and conclusions,
problems encountered and a strategy for completing the work
A draft final report, in Word and PowerPoint format, for presentation to the KIB executive, to
include:
o Key findings and analysis
o Discussion of findings and conclusions
o Actionable recommendations
o A proposed implementation plan for strengthening institutional capacity
A final report, in Word format, for presentation to the KIB Council
6. Timing
Inception report
Interim report
Draft final report
Final report
Completion of all materials (incorporating Board
comments)
Within 3 weeks of award of contract
Within 6 weeks of award of contract
Within 10 weeks of award of contract
Within 14 weeks of award of contract
Within 16 weeks of award of contract
7. Invitation to Tender
FSDA and KIB are inviting tenders from suitably qualified companies/firms/consultants.
Your proposal should contain:
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Names and CVs (maximum 3 sides of A4 paper each) of lead consultant (s) including qualifications
and relevant experience in providing the kind of assessment required and an outline of team
structure.
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A summary of your/your firm’s experience in providing the kind of analysis called for in these terms
of reference.
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A description of your understanding of the role of the Consultants as outlined in these terms of
reference.
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A description of how you/your firm intend to fulfil the Services within the suggested timeline.
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A financial proposal- an estimated budget for both professional fees and reimbursable
expenses. Please note that, notwithstanding the broad scope of this exercise, FSDA is expecting
bids up to GBP£89,000.
Your proposal which should not exceed 10 sides of A4 (font size 11), excluding CVs, company
brochures etc. should be sent by email to FSDA at [email protected] by noon (EAT) on 24th October
2014.
8. Basis of award
FSDA will award a contract to the most economically advantageous tender based on the following
criteria:
Mandatory requirements
Firm/individuals must be able to demonstrate a deep understanding of skills development in the banking
industry, preferably in Africa
Firm/individuals involved in the team must demonstrate that developing organisational capacity is a core
competence. This might involve demonstrating regular and recent successful examples of supporting
leadership development processes, organisational change and/or capacity strengthening of organisations’
HR function
Firm/individuals must have good knowledge of Kenya’s financial markets and political context
Firm/individuals must have the capacity to engage intensively with this assignment, with appropriate
involvement of senior team members, with a view to concluding the work by December 2014
Weighting
(% )
Assessment criteria
Relevant, demonstrated experience and capacity of firm/individuals in this area:
40%
Understanding/interpretation of the task set out in the TORs
20%
Content, quality and originality of proposal
20%
Fee basis and total costs
20%
Total
100%
9. Contact
Questions or comments in respect of these terms of reference should be directed by email to: Warucu
Itotia at [email protected].
Suggested references
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The research by Parthenon, Dalberg Global Advisors and others referred to in 4 above (available
from FSDA)
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