Ref No: HIHEA/02-2026/PROGProject Title: Applied Invest (AI) ProjectType of Assignment: Financial Analysis and Business Performance Improvement for Micro and Small Enterprises (MSEs)Location of project: Nairobi County and the neighboring counties of Kiambu, Murang’a, Machakos, and NyandaruaType of Applicants: Firm OnlyAssessment Period: 12 weeks TERMS OF REFERENCE (TOR)Background Hand in Hand Eastern Africa (HIH EA) is implementing the Unlocking Potential for Micro and Small Enterprises Project, which aims to strengthen the growth, resilience, and sustainability of micro and small enterprises (MSEs) Funded by Applied invest. The project supports entrepreneurs through tailored business development services to improve productivity, profitability, and access to finance with a clear higher objective of creating Jobs thereby improving the livelihoods of employees and the owner. As part of this support, HIH EA seeks to engage a qualified consulting firm to provide in-depth financial analysis to selected participating enterprises within the selected counties. The consultancy will help assess the financial health of enterprises, identify funding gaps, recommend cost optimization strategies, and guide strategic investments that enhance profitability and long-term growth. Objective of the Consultancy The overall objective of this consultancy is to strengthen the financial performance and investment readiness of supported MSEs through professional financial diagnostics and practical, enterprise-specific recommendations. Specific objectives are to: Assess the current financial health and performance of selected MSEs and provide a report to each MSE. Identify funding gaps and optimal financing options - Recommend cost-cutting and efficiency improvement strategiesProvide a list of priority investment area to increase profitability and sustainability Scope of Work The consulting firm will be expected to undertake, but not be limited to, the following tasks: Financial Health Assessment Review enterprise financial records (income statements, cash flow statements, balance sheets, where available) Assess liquidity, profitability, solvency, and efficiency indicators Analyze cash flow management and working capital cycles Identify key financial risks and weaknesses Funding Gap AnalysisDetermine short-, medium-, and long-term financing needs of each enterpriseAssess current capital structure and financing sourcesIdentify funding gaps relative to growth plans and operational needsRecommend appropriate financing options (internal financing, debt, equity, grants, blended finance, etc.) and institutions that offer the funding facilities Cost Optimization and Efficiency ImprovementAnalyze cost structures and major cost driversIdentify inefficiencies and cost leakagesPropose practical cost-cutting strategies that do not compromise product or service qualityRecommend operational efficiency improvements Profitability and Investment Advisory- In excel formatAnalyze revenue streams and marginsIdentify high-impact investment opportunities within the enterprise (e.g., equipment, technology, skills, market expansion)Assess expected returns on proposed investmentsProvide clear, prioritized recommendations to improve profitability Reporting and Advisory SupportPrepare concise enterprise-level financial diagnostic reportsPresent findings and recommendations to entrepreneurs and project staffProvide actionable financial improvement plans for each enterpriseWhere required, support enterprises to refine financial projections and basic investment cases Deliverables The consultant is expected to deliver the following: Inception report detailing methodology, tools, and work planFinancial diagnostic reports for each assessed enterprise Funding gap and financing recommendation summariesCost optimization and efficiency improvement recommendationsProfitability and investment advisory notes per enterprise Consolidated summary report highlighting common trends, risks, and lessons across enterprises.Simple standard tools or templates for each component for future assessment. Presentation of findings to HIH EA and relevant stakeholders to validate tools and reports. Methodology The consulting firm is expected to apply a practical, participatory, and enterprise-centered approach, which may include: Review of existing financial records and business documents One-on-one interviews with entrepreneurs On-site or virtual enterprise assessments Use of simple, practical financial analysis tools suitable for MSEs Duration of the Assignment The assignment is expected to be conducted over a period of 12 weeks covering 50 enterprises, which means at least 8 hours per enterprise. The final workplan will be agreed upon during contract signing. Reporting and Supervision The consultant will report to Hand in Hand Eastern Africa (HIH EA) through the Project Manager, Unlocking Potential for Micro and Small Enterprise Project. All deliverables will be submitted to HIH EA for review and approval with periodic review meetings. Consultant Qualifications and Experience The consulting firm should demonstrate: At least 5 experiences in financial analysis, business diagnostics, and advisory services for MSEs Completed at least 2 similar assignment in the previous years Strong expertise in financial modeling, cash flow analysis, and investment appraisalExperience working with donor-funded or development programs is an added advantage with proven evidence.Understanding of the local business context and challenges facing MSEs A multidisciplinary team with relevant qualifications in finance, accounting, economics, or business management, include profiles Proposal Submission Requirements Interested firms should submit: Technical proposal outlining understanding of the TOR, methodology, and work planCompany profile and demonstrated relevant experience CVs of proposed key personnel Financial proposal with a clear cost breakdown in KES. Confidentiality All enterprise data and information accessed during the assignment shall be treated as confidential and used solely for the purposes of this consultancy. Anti-Corruption and Safeguarding Hand in Hand Eastern Africa strives to fight corrupt practices within its operations and the same is expected of its vendors, contractors and service providers. HIHE EA staff are therefore prohibited from accepting any gift/s, consideration or benefit/s of any kind which may constitute illegal or corrupt practices, either directly or indirectly, as an inducement or reward for the award of a contract. HIHE EA and all its employees undertake to create a safe environment for our members and to prevent any form of exploitation or abuse. We are committed to acting in the best interest of our member’s and any willing vendor, contractor or service provider is required to commit and comply with our position on safeguarding. Submission of Proposal Requirement Proposals will be made to procurement@handinhand-ea.org by 30th March 2026, citing the reference number as the subject of the email. All submitted proposals will be treated confidentially.

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Tor - Financial Analysis And Business Performance Improvement For Micro And Small Enterprises (Mses)