ILO Request For Proposal for Individual Kenyan consultant specializing in Livelihood and Social Finance.

1. Introduction

Child labour remains an endemic problem in sub-Saharan Africa, with the number of children affected reaching 92.2 million in 2020, a significant increase on the 72.1 million in 2016. According to the Kenya National Bureau of Statistics (KNBS), 8.5 per cent of children in Kenya (1.3 million) are engaged in child labour. The highest rates of child labour in Kenya are reported in arid and semi-arid land (ASAL) counties (above 30 per cent). Child labour in Kenya primarily occurs in informal production, specifically in the agricultural sector. However, with steady rural-urban migration, urban child labour has emerged as an issue in towns and cities. Kenya is the world’s leading exporter of tea and the third largest producer, after China and India. The tea industry makes an important contribution to the Kenyan economy, with an export value of USD 1.2 billion in 2019, and supports about 5 million people directly and indirectly. An estimated 650,000 small-scale farmers depend on tea, making the industry one of the leading sources of livelihood in the country. Coffee is also a major agricultural export for Kenya and is primarily grown by smallholder farmers. Agriculture is one of the largest contributors to child labour in Kenya, including in the production of tea and coffee. Tea and coffee from Kenya are included on USDOL’s List of Goods Produced with Child Labour. Thus, there is need to focus innovative interventions towards addressing child labour in agriculture value chains for greater impact against child labour. The government of Kenya is committed to the elimination of child labour. In 2020, the government took measures to reinvigorate its National Steering Committee on Child Labour (NSCCL), including by creating and convening the inaugural meeting of a Technical Working Committee (TWC), reinstituted county-level child labour committees, and increased the number of prosecutions for worst forms of child labour. To promote employment opportunities for young people, the government has prioritized TVET and skills development as the underpinning enabler for realizing the country’s Vision 2030. Reform to the TVET system is ongoing, including the development of the County Vocational Education and Training Bill for devolved administrative, the imminent review of the TVET Act 2013, and formulation of strategy papers on blue economy, digital economy and greening of TVETs. In addition, the government enacted the National Prevention and Response Plan on Violence Against Children to coordinate multi-sectoral activity to address violence against children, including commercial sexual exploitation and other worst forms of child labour. In Kenya the legal framework on labour rights is also fairly developed, with strong constitutional safeguards supported by an array of statutes and regulations. However, there are challenges concerning the adequacy of enforcement mechanisms, mainly because few resources are allocated towards addressing child labour. Province and non-state initiatives which address child labour are not sufficiently integrated. Additionally, there is concern that responses to child labour in Kenya often center on redress rather than child labour prevention. As such, there is a need to address cross-border drivers of child labour through inter-state collaboration.

A primary driver of child labour in Kenya is household poverty which affects 36.5% of the population. According to the Kenya Child Poverty Report, published by UNICEF, the child poverty rate stood at 45 per cent in 2017, meaning about 9.5 million children in Kenya were severely deprived in three or more of their basic needs for wellbeing. There was a large disparity in this rate between urban and rural areas, with urban areas having a child poverty rate of 19% and rural having a rate of 56%. The precarious socio-economic position of many families in Kenya is easily intensified by factors such as destabilizing pandemics, famine, global economic downturns, and civil strife, among others. Further, the lack of effective socio-economic safety nets under existing social protection programmes and schemes has also intensified the situation of child labour in Kenya. Financial inclusion plays a crucial role in tackling the root causes of child labour by empowering families to escape poverty and achieve economic security. Access to financial services, such as savings accounts, insurance and credit, can help households build assets, invest in their livelihoods and meet their basic needs without resorting to child labour.The latest data (World Bank) on financial inclusion in Kenya indicates that access to financial services increased from 42% to 79% between 2011 and 2021. But the key challenge for financial inclusion specifically in rural areas of Kenya revolves around the limited access, usage, and quality of formal financial services for the poor. Despite efforts, a significant portion of the rural population still lacks access to basic financial products like savings accounts, credit, and insurance. Even when services are available, factors such as low financial literacy, lack of tailored products, poor service quality, gender disparities, identification document requirements, limited physical infrastructure, low income levels, and inadequate digital connectivity hinder effective usage and widespread adoption, perpetuating financial exclusion in these regions. In addition, the Durban 2022 Call to Action stresses the importance of addressing decent work deficits and income poverty in supply chains to mitigate the risk of child labour. In rural Kenya, decent work deficits are prevalent across various sectors, particularly those characterized by smallholder production and informal employment. These deficits include child labor, forced labor, and excessive working hours, often driven by low remuneration and piece-rate payment schemes. The instability of rural work, coupled with the exclusion of casual, temporary, and subcontracted workers from social protection schemes, further exacerbates the challenges faced by rural workers. Gender-based discrimination is also evident, with women disproportionately represented in precarious, low-paying positions and facing workplace harassment. Additionally, the COVID-19 pandemic has exacerbated these issues, leading to job losses, reduced working hours, and delayed payments, particularly in sectors dominated by smallholders.
Kenya has taken commendable steps to address child labour. However, sustained efforts are needed to achieve lasting impact. Addressing legal framework gaps, expanding social protection, and tackling broader economic challenges are crucial. Continued international collaboration will be vital in supporting Kenya’s efforts to eliminate child labour and ensure a brighter future for its children. Combating child labour requires a multi-faceted approach that goes beyond monitoring and cleaning up workplaces.

2. Context
The second phase of the International labour Organization (ILO) project Accelerating Action for the Elimination of Child labour in African Supply Chains (ACCEL Africa 2023-2028) has the overall objective of accelerating the elimination of child labour in Africa through targeted actions in selected supply chains in Côte d’Ivoire, Ghana, Kenya, Mali, Nigeria and Uganda. In Kenya the project will focus on the value chain of coffee and tea.
Most child labour in Kenya is found in the agricultural sector, including the cultivation of coffee and tea:

• Coffee is one of Kenya’s major agricultural exports and is primarily grown by smallholder farmers.
• Coffee is included on USDOL’s List of Goods Produced with Child Labour in Kenya (USDOL 2021)
• Tea is Kenya’s top export. It is the largest tea exporter in Africa and the third largest globally. Initial in-depth studies conducted by ILO under the USDOL-funded All Hands in Kenya Project have identified child labour as a concern in Kenya’s tea production sector, mostly characterized by smallholder production.

To achieve its objective, the project uses an innovative systems-building approach to tackling child labour that moves away from downstream project-based interventions to strengthen existing systems that are essential for tackling the root causes of child labour. The project aims to achieve three outcomes at sub-national, national, regional and global levels:

1. Policy, legal and institutional frameworks are improved and implemented to combat child labour in global supply chains;
2. Innovative, evidence-based solutions that address the root causes of child labour in supply chains are institutionalized; and
3. Strategies to address the root causes of child labour in global supply chains are scaled up through knowledge sharing, partnerships and funding.

At each level, it will target the root causes of child labour, including access to social protection, decent work for adults, improved livelihoods, the transition from school to decent work for young people, and a safe and healthy working environment.
To kickstart the social finance component of the second phase of the ACCEL project and facilitate the implementation of the livelihood and social finance intervention model in Kenya the project is enlisting the expertise of a livelihood and social finance research consultant.

3. Work description
Objective
The objective of this consultancy is to conduct a comprehensive needs assessment of smallholder farmers, workers, and vulnerable groups within the tea and coffee value chains in Kenya. The consultant will focus on assessing livelihoods, identifying financial and non-financial service needs, and examining how these impact child labour. The assessment will provide actionable insights that will guide interventions aimed at eliminating child labour by addressing the economic vulnerabilities of these groups.

Scope of Work

• Detailed Scope: the consultant will perform a detailed assessment through the following phases:
• Desk Research and Preparation (4 days): conduct inception meetings with the project team, review existing reports, studies, and data on child labour, financial inclusion, and smallholder livelihoods in the tea and coffee sectors. Develop all necessary tools for data collection, including focus group discussion guides, interview protocols, and survey questionnaires.
• Field Research (10 days): map and identify key beneficiary groups such as smallholder farmers, workers, cooperatives, and village savings and loan associations (VSLAs). Conduct site visits to communities to collect data via surveys, focus groups, and interviews. Assess labour demand and supply dynamics in relation to child labour, and the specific financial needs of these groups.
• Stakeholder Interviews (5 days): engage with stakeholders including financial service providers, and association and NGOs to understand the current services and gaps that contribute to child labour in value chains.
• Data Analysis and Reporting (5 days): analyze collected data to identify key challenges in livelihoods and financial access. Develop a comprehensive report including actionable solutions and personas that describe typical beneficiaries’ interactions with financial services.
• Feedback and Validation (5 day): present preliminary findings to key stakeholders, facilitate a feedback session, and refine the final report based on this input.

Deliverables

• Inception meetings summary
• Data collection and analysis tools
• Raw data
• Comprehensive needs assessment report (PDF and Word format)
• Stakeholder workshop materials
• Dissemination Materials: a one-page summary, and PowerPoint presentation summarizing the findings and proposed solutions.