Consultancy - ANALYSIS ON DOMESTIC RESOURCE MOBILIZATION FOR BASIC PUBLIC SERVICE DELIVERY IN KENYA

Terms of reference

ANALYSIS ON DOMESTIC RESOURCE MOBILIZATION FOR BASIC PUBLIC

SERVICE DELIVERY IN KENYA

Introduction

Oxfam Kenya in partnership with the National Taxpayers Association (NTA) and other local

partners are implementing a three year project on Domestic Resource Mobilisation (DRM)

with financial support from the Ministry of Foreign Affairs of Finland. The project is titled

“Mobilising progressive domestic resources for quality public services in Kenya” and the

overall objective is to support civil society organisations, community based organisations, and

communities in Nairobi, Turkana and Wajir counties of Kenya, to be better placed to demand

progressive taxation, more accessible public services and accountable government. In doing

this, the project seeks to contribute to promoting accountable and transparent gender sensitive

resource mobilization, allocation and spending on public services in order to tackle inequality

and poverty.

Purpose of the study

The purpose of the analysis is to provide Oxfam and partners with gender sensitive

information on national and county mobilization, allocation and spending of resources for

service delivery in Kenya with a specific focus on Nairobi, Turkana and Wajir Counties. The

analysis will inform the Theory of Change, assumptions and key areas of focus for the project,

following which Oxfam and partners will develop work plans, corresponding budgets, and the

Monitoring, Evaluation and Learning (MEL) Framework and finally conduct the Baseline

before project implementation begins.

Recognizing that other actors in Kenya are working on tax justice and that the existing project

scope is broad and ambitious, we are looking to conduct an in-depth analysis of tax justice in

order to better understand where the project can add value as well as to refine the scope of our

work and inform project design.

This analysis will also provide guidance on the critical issues for further study and to

influence our campaigning.

Specific Objectives

o To analyse the progressiveness or regressiveness of Kenyan tax policies including tax

incentives

o To analyse the allocation and utilization of resources by both national sector specific

(health, education and water) and county governments in provision of social services

o To provide a stakeholder mapping and power analysis in DRM at national level and target

counties

o To analyse gender sensitiveness of mobilisation, allocation and spend of public resources

at national level and target counties

o Provide recommendations and strategies on promoting fair taxation and utilization for

basic public service delivery in Kenya

Scope of Assignment

The analysis will identify the critical actors and institutions which facilitate or block reform

and unpack the visible, invisible and hidden relationships between these actors and

institutions. It emphasises the importance of context, power, institutions, actors, relationships

and processes. Understanding the interests and influence of different stakeholders and how

their power is exercised within a particular institutional context is central to both effective and

equitable policy reform and successful policy implementation. The analysis will test the

explicit and implicit assumptions about the influence and interests of stakeholders and the

way that power is exerted in a specific institutional and individual context, that underlies

policy reform and implementation as well as attitudes and behaviours. In particular, the

analysis will:

o Provide an overview of the Kenya tax system (and corresponding policies) and the extent

to which it is progressive/regressive

o Overview of why particular reforms or policies have been successful or less successful in

Kenya in bringing about progressive taxation

o Integrate a gender analysis, power analysis, stakeholder mapping and economic analysis

o Provide recommendations on what needs to be addressed and the key interventions

o Overview of what is taxable (including the extractive sector)

o An analysis of revenue mobilized, allocated and spent by National target sector Ministries

and target counties, as a percentage of the resources allocated from National government

and revenue generated from domestic sources

o Overview of the balance between national/county governments in the sector and the extent

to which the county government is a distinct actor of the national government

o Recommendations on how DRM capacity can be improved for enhanced service delivery

o Citizens’ and stakeholders’ perceptions and engagement in taxation and service delivery

o An overview of Government commitment to health, education, water and sanitation

services, and regional or international recommendations for spending on these basic

services, as well as existing levels of demand for the services against the current allocation

by the national and target county governments

o Recommendations on the most strategic and critical area for tax justice programming in

Kenya, based on findings. Including opportunities (entry-points) and emerging trends.

1. Methodology

This study will present both quantitative and qualitative data which will be collected from a

mix of both secondary and primary data sources. The secondary data will be collected through

a comprehensive review and analysis of the existing relevant data sources.. The primary data

on the other hand will be collected through interviews and discussion with relevant

respondents, including in target project locations (Turkana, Wajir, Nairobi). The identified

research firm/consultant will develop relevant data collection tools and identify the

appropriate means for collecting the data which will be discussed and agreed with Oxfam and

partners, prior to the data collection exercise. The data will be analysed using appropriate data

analysis packages such as SPSS or other conventional means. The data should be presented

in a logical, meaningful, reader friendly and simple language on a date agreed with NTA and

Oxfam.

The initial priority will be the desk-based research and stakeholder mapping (which will

provide an overview of allies and potential partners) to be presented in mid/end May.

Deliverables

o A final proposal outlining the methodology, list of key informants, proposed tools and

work plan to be presented within 3 days of signing of the contract.

o Stakeholder mapping to be presented as a separate document in mid/end May, for later

integration into the final report.

o Following desk review, refine and present field data collection tools for discussion and

approval by NTA and Oxfam before commencement of data collection.

o Draft report to be shared with NTA and Oxfam for their feedback to be incorporated in the

draft report (time for addressing the feedback will need to be built into the timeframe of

activities).

o Dissemination of the revised draft report to key stakeholders followed by a Q&A and

feedback from the stakeholders.

o Final report that incorporates feedback from stakeholders

o Presentation of key findings and recommendations during the Nairobi level project launch

The written report will be:

o Produced in English language and using accessible and concise language.

o The report format and text shall be in A4 paper size and a legible Arial 12 font size.

o The report should not exceed more than 50 pages.

o At least one hard copy and one electronic copy by the agreed deadline.

The following structure will be followed:

(i) Introduction

(ii) Purpose and objectives

(iii) Methodology

(iv) Findings (outlines to be agreed by both parties after the field work)

(v) Recommendations

The report will provide clear analysis of Kenyan domestic resource mobilisation, as well as

allocation and spending on public services.

Skills and Experience

This study will be conducted by a team of researchers who will possess the following:

o At least a Masters Degree in Economics/ Business Studies/public policy, social science or

related field for the lead consultant and a minimum of Bachelors Degree on the relevant

academic areas for research assistants.

o Five years demonstrated experience in economic research and policy analysis in Kenya as

the lead consultant

o Previous knowledge and experience on tax and budget issues preferably in health,

education or water sectors

o Good understanding of Kenyan Constitution and devolution policies

o Conversant with application of cross cutting themes such as gender mainstreaming and

governance

o Experience in stakeholder mapping, power and gender analysis

o Proven experience of using participatory methods as the means of data collection and

analysis.

o Fluency in spoken and written English and Swahili.

o Excellent analytical and report writing skills with skills in using statistical packages such

as SPSS, Epi data, N-Vivo etc.

Confidentiality of information: All documents and data collected will be treated as

confidential and used solely to facilitate analysis. Interviewees will not be quoted in the

reports without their permission.

Content

All the required documents and reports in their draft and final versions shall be submitted to

NTA National Coordinator within the specified timing in this ToR. The Coordinator commits

to give written feedback to each of the submitted documents within 5 working days of receipt.

Consultancy Period

The period of this consultancy will be approximately 35 working days, starting on the 11th

May 2015 and to be completed by 26th June 2015.

Management

Tax and VAT arrangements

NTA will deduct withholding tax from the consultancy fees which will be in conformity with

the prevailing government rates and submit the same to the Government of Kenya. The

consultant will be entitled to a copy of the tax submission certificate on request from NTA.

Supervision

The overall supervisor of this assignment will be NTA Coordinator and the Oxfam Project

Manager.

Bid Requirements

Consultants who meet the requirements of this assignment should submit Expression of

Interest of NOT MORE THAN 10 PAGES which should include the following:

o Proposed study methodology including a detailed work plan.

o Updated curriculum vitae of the consultants that clearly spell out their qualifications and

experience.

o Contacts of 3 professional organizations that have recently contracted the consultant to

carry out similar study/research tasks.

Financial proposal with daily costs per activity which shall be part of the 10 pages

expression of interest.