In 2009, the Central Bank of Kenya (CBK), the Kenya Bankers Association (KBA) and FSD Kenya commissioned a study to identify and document the collateralisation process and determine the costs associated with the steps involved. The study at the time identified constraints in the legal framework, registration of security interests and weak enforcement mechanisms that altogether, contributed more than 1% of the cost of credit secured by collateral.
Several reforms have since taken place following the study. Notably, a new secured transactions regime was established with the enactment of the Movable Property Security Rights Act 2017 (MPSR Act) and the deployment of an electronic movable collateral registry. Some of the multiple laws relating to the collateral process have since been repealed. The Ministry of Lands and Physical Planning has since 2013 been engaged in efforts to digitize the land registries and develop an electronic land information system. The legislative reforms process that underpins this process is already underway, with the Land Registration (Electronic Transactions) Regulations already gazetted.
There is a strong case to update the 2009 study to explore the impact of the reforms and market developments on the collateralisation process. Updating the study will also point out new priority areas for policymakers and opportunities for reform in line with the Government’s wider efforts to lower the cost of credit.
FSD Kenya is seeking Expression of Interest (EOIs) for this work from firms or consortia that have the following mandatory requirements:
- At least 10 years’ practical financial sector experience, preferably in both commercial banking and financial law.
- Experience in financial sector reforms with an emphasis on credit markets development.
- Experience in providing legal advice on secured transactions or experience as a secured transactions practitioner, including relevant knowledge of best practice and international conventions.
- Familiarity with Kenya’s financial sector policy and regulatory framework and commercial law. Previous private sector or regulatory experience will be an added advantage.
EOIs not exceeding 5 pages of A4 (excluding CVs and font size 11) must contain the following:
- Capability statement of the firm or consortia and the personnel being proposed by firms.
- A concise outline of how the firm or consortia meets each of the four mandatory requirements stated above
- Abridged CVs of key personnel (not more than three pages each).
A full detailed proposal, work plan or financial proposal is not required at this stage.
Expressions of interest should be sent to [email protected]