Mid-term review of the Kakuma Kalobeyei Challenge Fund

The Client: The International Finance Corporation (IFC) under WorldBank Group Kenya. IFC improves people's lives in developing countries by investing in private sector growth. It connects economic development with humanitarian needs to create real progress for the people and places that need it most.

The programme: The Kakuma Kalobeyei Challenge Fund (KKCF) Programme, operating under the IFC, addresses the economic challenges faced by forcibly displaced individuals and host communities in Northern Kenya’s Kakuma-Kalobeyei area. There are three windows though which IFC / KKCF channels loans and grants:

• Private Sector Window (PSW) for small and medium-sized private sector companies planning to start-up or expand operations in the KK area;
• Social Enterprise Window (SEW) for social businesses wanting to commence or scale-up operations in the KK area; and
• Local Enterprise Development (LED) window targeting local small and micro enterprises owned by refugees or the host community.

The programme focuses on ESG and gender. By leveraging the private sector, supporting local enterprises, fostering inclusivity, and streamlining business operations, KKCF aims to promote economic growth, self-reliance, and social cohesion, ultimately improving the livelihoods of those affected by forced displacement.

The challenge: It is the first time that IFC invests in this fragile context via KKCF. This is done by leveraging the private sector, supporting local enterprises, fostering inclusivity, and streamlining business operations. During this mid-term period, IFC needs to know to what extent KKCF promotes economic growth, self-reliance, and social cohesion.

The solution: MDF ESA with partner Syntesia conducted a comprehensive mid-term review and six business case studies. The assignment included:

• Digital data survey with KKCF 55 investors and their users and clients (155)
• KII with 73 stakeholders and FDGs / business visits.
• Business case studies focusing on agribusiness, education/childcare, financial services, telecommunications and Environment, Social and Gender aspects (ESG)
• Landscape analysis of business climate and context in refugee / IDP areas
• Revision of Theory of Change

This led to the assessment of mid-term progress against the programme objectives, DAC evaluation criteria, including lessons learned and recommended actions to maximize efficiency and effectiveness for the remaining duration of the programme.