Kenya Financial and Legal Sector Technical Assistance Project – Consultancy to Conduct a Research on Interbank Market Operations

Republic of Kenya
Office of the Deputy Prime Minister and Ministry of Finance
Financial and Legal Sector Technical Assistance Project
Consultancy to Conduct a Research on Interbank Market Operations
Request for Expression of Interest
Ref: EOI/004/2010-2011
Credit No. 3992 KE
Project ID No. P083250.
This request for Expression of Interest follows the General Procurement Notice (GPN) for this project that appeared in United Nation Development Business No. 674 of March 16, 2006 and was updated in UN Development Business No. 707 of July 31, 2007. The Government of Kenya has received a credit from the International Development Association and a Grant from the UK Department for International Development (DFID) towards the cost of the Financial and Legal Sector Technical Assistance Project (FLSTAP).

It is intended that part of the proceeds of this credit be applied to eligible payments under the contracts for provision of Consultancy to conduct a research on interbank market operations. This consultancy research is expected to take a period of ten months.
1. Objectives of the Assignment
The main objective of the proposed research consultancy is to understand the operations of Kenya’s inter-bank market. Understanding this market will enable the Monetary Policy Committee to formulate policies which can help improve the transmission mechanism of its policies to the shorter end as well as the longer end of the market.
2. Scope of Work
The consulting firm is expected to:
  • Document evidence on the dynamics and emerging patterns in the interbank market in Kenya.
  • Investigate whether, in Kenya, banks that borrow from other banks through the interbank market have lower risk levels. The idea is to test whether, through the interbank market, banks are effective monitors of their peers, reflected in lower borrowing costs. This is more crucial as commercial banks are getting into the horizontal repo market.
  • Investigate to what extent the interbank market is potentially a source of contagion effects, by testing for bilateral exposures within the market in Kenya. It is important to note that contagion effects to a large extent depend on the type of participation in the market.
  • Investigate the relationship between the interbank market and bank regulation in Kenya.
  • Explore the monetary policy implications of changes in quantities (liquidity) and prices (interest rates) in the interbank market in response to policy change and open market operations.
3. Expertise Required
The consulting firm should demonstrate, in writing, their understanding of the topic in addition to having extensive experience in financial market operations
4. The Ministry of Finance (the Client) through its Project Implementation Unit (PIU) now invites eligible consulting  firms to express their interest in providing this service. Interested consulting firms shall provide information indicating their professional capability to undertake the consultancy.
Such information may include brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc. Consultant firms should provide the most recent profiles of their consultants showing their experience, qualifications, capabilities, references and details of past experience especially in the area of their expertise etc. Consultants may associate to enhance their qualifications
5. Interested eligible firms may obtain further information at the address given below during office hours between 0900 to 1630 hours, Monday – Friday inclusive, exclusive of public holidays, before the deadline for the submission of Expressions of Interest. The selection of consultants will be in accordance with procedures set out by World Bank Guidelines: Selection and Employment of Consultants by World Bank Borrowers, May 2004 and revised in October 2006.
6. Complete Expressions of Interest documents in plain sealed envelopes with consultancy reference and name clearly marked on top should be sent to the address below or forwarded using the email addresses as shown below or placed in the tender box at our offices on the 7th floor, Anniversary Towers, North Tower
Postal Address:
Project Implementation Unit
Attention: Procurement Specialist
P.O Box 00100 – 34542
Nairobi, Kenya.
Physical Address:
Project Implementation Unit
Attention: Procurement Specialist
7th Floor, Anniversary Towers, North Tower.
Plot No. 209/9744, University Way
Nairobi, Kenya.
Telephone No.: 254 – 20 – 2210271/2210341
Fax No.: 254 – 20 – 2210327
E-mail: info@flstap.go.ke
7. Deadline for submission of Expressions of Interest is 30th Sept 2010 at 1600 hours Kenyan local time.
Procurement Specialist, FLSTAP
For: Financial Secretary

You can also visit www.kenyanvacancies.com for more jobs