AGPO Final

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TABLE OF CONTENTS
PURPOSE OF THE PROGRAM.........................................................................................................4
OBJECTIVES..................................................................................................................................4
TARGET AUDIENCE ....................................................................................................................... 4
Course DESCRIPTION .................................................................................................................... 4
MATERIALS...................................................................................................................................5
Lesson 1 – INTRODUCTION............................................................................................................ 7
Participants Brief Self Introduction – 10 minutes ........................................................................7
Ground rules ............................................................................................................................ 7
Course description.................................................................................................................... 7
Guess the Person Icebreaker.....................................................................................................8
Lesson 2 – DOING BUSSINESS WITH THE GOVERNMENT .................................................................9
Lesson 3 – SECTOR WHERE AGPO APPLIES ..................................................................................... 9
Lesson 4 – REQUIREMENTS TO ACCESS GOVERNMENT PROCUREMENT OPPORTUNITIES................ 10
Module debrief .......................................................................................................................... 11
Module introduction – 5 mins..................................................................................................... 13
Lesson 1: FORMS OF LEGAL BUSINESSES IN KENYA – 25 MINS....................................................... 13
Ndekezi and friends story........................................................................................................ 13
Lesson 2: BUSINESS REGISTRATION – 80 MINS ............................................................................. 14
Partnership/Sole Proprietorship/ Limited Company Registration Process in Kenya...................... 15
Lesson 3: OTHER LEGAL BUSINESS DOCCUMENTS......................................................................... 15
Module debrief .......................................................................................................................... 15
Introduction – 15 mins................................................................................................................ 17
Lesson 1: BUSINESS FINANCING OPTIONS – 75 MINS.................................................................... 17
Youth Enterprise Development Fund........................................................................................ 17
Women Enterprise Funds........................................................................................................ 18
UWEZO Fund.......................................................................................................................... 18

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Eligibility Criteria for Applicants............................................................................................... 19
LPO Financing......................................................................................................................... 20
Module debrief .......................................................................................................................... 20
Welcome .....................................................................................................................................0
Lesson 1 – lpo FINANCING............................................................................................................. 0
Lesson 2 – LPO services offeringinstitution.................................................................................... 1
Module debrief ............................................................................................................................ 1
Individual work............................................................................................................................. 1
APPENDICES.................................................................................................................................2
Appendix 1: Specific requirements for operating business inKenya ............................................. 2
Appendix 2: Additional requirements for operating specific businesses in Kenya.......................... 2
Appendix 3: Regulatory requirements for MSEs..........................................................................4

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PURPOSE OF THE PROGRAM
The DOT’s AGPO program provides ReachUp! and StartUp! successful participants with
information about public procurement opportunities, the requirements needed to benefit
from the same, and the various financing options availed by the government.
OBJECTIVES
DOT’s AGPO program prepares participants to have confidence in doing business with the
Kenyan Government, especially in procurement opportunities. The main outcome of DOT’s
AGPO program is to empower the youths and women to take advantage of the public
procurement opportunities reserved for the special cases, thereby increasing the uptake.
The participants will also be able to increase their uptake for financing opportunities availed
by the government.
By the end of DOT’s AGPO program, participants will be able to:
 Identify areas where government/public procurement opportunities exists,
 learn about the requirements that are needed in order to access government
procurement opportunities,
 Learn about business registration process in Kenya,
 Identify government agencies and department that their business need to comply
with,
 Identifying various options available for financing startup businesses or ongoing
businesses, and
 Establish their short- and- medium term actions.
TARGET AUDIENCE
DOT’s AGPO program targets the participants who:
 Have gone through ReachUp! and intends to start businesses,
 Have completed StartUp! program and have an interest in starting a business.
 Are currently running a business.
COURSE DESCRIPTION
DOT’s AGPO program is a “final-business” course that can be taken to prepare people from
the ReachUp! and StartUp! course to identify and position themselves to the government
procurement opportunities that are reserved for women, youths and people living with
disabilities. AGPO addresses issues that women entrepreneurs, youth entrepreneurs, and
people living with disabilities, running micro businesses face with regard to doing business
with the government. Doing business with the government in Kenya is very lucrative and
enable new business to stabilize very fast.
DOT’s AGPO program addresses these issues through helping participants to do the
following:
 Understand and identify areas where government procurement opportunities are
available. Participants identifies the various state corporations and government
departments offering opportunities that are in line with the participants areas of
interests.

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 Learn about the requirements that are needed for the Access to Government
Procurement Opportunities (AGPO) and how well they can do the necessary
arrangements to be well equipped with such requirements.
 Learn about the business registration process. That is how they can make their
proposed businesses or new business to be legally registered, by the government.
Categories of registration and the benefits of each type of registration.
 Participate in the identification of departments and offices that they need to legally
comply, so as to enable them eliminate inconveniences and embarrassment once
their business are up and running.
 Participants to develop a complete, SMART Action Plan that will help participants
register their business or business ideas. The purpose of this is to come up with a
clear road map that will see them through the registration of their business.
 Make participants be aware of what short- and medium-term action steps look like.
DOT’s AGPO program involves formal classroomlearning facilitated by Interns. The in-class
experience is then followed by a deeper application of the concepts learnt through their
homework and group work.
MATERIALS
Participants will use a blank notebook to record notes and other details and should bring the
notebook to every session. Participants can later refer to their notebook to rethink

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MODULE 1, GOVERNMENT PROCUREMENT
OPPORTUNITIES
Timing Minutes
Preparation  Read through the module to get a sense of the flow and to gain an
understanding of what happens
 Work through the exercises as if you are a Participant to develop
examples or samples for explanations
 Read through the module and add notes and your own phrasing
and explanations to any complex concepts
Outcomes In this session, Participants will be able to:
 Take steps to create a positive learning atmosphere
 Identify the reasons why youths and women should consider doing
business with the government
 Identify departments and offices where Government Procurement
Opportunities are available.
 Eligibility criteria to accessing Government Procurement
Opportunities.
Methods The methods to be used in delivering this module includes:
 Facilitation
 Group discussions
 Assigned tasks.
Purpose This module introduces Participants to the Kenyan AGPO program, and
requirements for access.
Materials  Notebook
 Flip chart
 Sticky notes
 Markers
Module
sections
Welcome, Introduction and ground rules 30 mins
Icebreaker 15 mins
Doing business with the government 10 mins
Identify government agencies and departments
offering business opportunities to women, youths and
people living with disabilities.
30 mins
Requirements to access AGPO 40 mins
Debrief 15 mins
Notes:

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LESSON 1 – INTRODUCTION
Participants Brief Self Introduction – 10 minutes
Now that we had met in the previous curriculum, will quickly do a self-introduction so that
we could know each other better. This will be important to us as we will be spending a few
more day going through this curriculum.
Ground rules
Set ground rules – 20 minutes
Now that we know each other a bit better, I will walk you through the agenda.
We are going to be spending a lot of time together. You will be very busy, you will be
challenged and you will have a lot of fun.
What are some of the ground rules that we might want to set to ensure that we are working
well together?
 Share your ideas and answer questions
 Listen to others
 Stay open to new ideas
 Take risks
 Ask for help
 Ask questions
 Help each other
 Reflect
 Have fun
 Participate
 Respect others by listening and not interrupting
 One conversation at a time
 No cell phones, iPods, etc.
 Start on time
 Return from breaks on time
 Be kind to each other
 Give this your BEST!
Course description
In this module, participants are going to learn more about the benefits of doing business
with the government through procurement process, and further identify government
departments where procurement opportunities axis. They will also identify the
requirements necessary to enable an individual participate in a government’s procurement
process.

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To enrich this exercise, as a facilitator, allow the participants to give their expectation for
the module. Have everyone involved by encouraging each person to give at least on
expectation.
Guess the Person Icebreaker
[Consider spending at least 15 minutes or
longer on a Guess the person icebreaker,
where Participants will get to guess the name
of a person upon the descriptions given.]
Guess the person
Also known as the Name Game or Fishbowl
This game works best with smaller groups -
around 8-12 people, so if you have a big
group, it's best to split up and play multiple
games.
Each person should write down the names of
10 people - either famous people or people
everyone in the group knows. Get people to
cut their pieces of paper up so there's one
name per piece of paper. Go around and
collect them in a basket or hat. You should
have quite a few names in the basket.
Split into 2 or 3 teams (each team having around three or four members).
Round One.
Pick a team to start - one member of that team gets the basket of names, picks out a
name, and has to try and describe that person to the other members of his
team. Once they guess correctly, pull out another name from the hat and so on. The
team has one minute to go through as many names as they can. If they get stuck on
a name, they can pass and move onto the next name. Names that are guessed
successfully, put in a separate pile, those that are 'passed' put back in the basket.
When the minute is up, add up the total number of names guessed, and add that to
the team's score. Move onto the next team who do the same as above. This
continues until all the names have been used up or 'guessed'.
Round Two.
Similar to Round 1 but you can only use one word to describe the person to your
group. The group will be aware of all the names in the basket (from round 1) so it is
easier than it sounds. Score a point per name guessed as above.
Round Three
Same as previous rounds but this time, you have to 'act' out the person without
speaking.
Add up the scores at the end to see who wins!
(Facilitator notes)
In this game, participants should,
where possible raise the names
of successful entrepreneurs
within their communities,
regional levels and even at the
national level.
Where possible those doing
supplies, construction are key to
this module as their roles takes
center stage in procurement
process.

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LESSON 2 – DOING BUSSINESS WITH THE GOVERNMENT
Understanding what procurement is, will
go a long way in motivating the
participants to take part. Discussion
about what procurement is and what it is
not should be made as interesting as
possible. The discussion should take 7 –
10 minutes to conclude. Facilitator
should ask participants questions such
as;
 What is procurement?
 Which kind of activities takes place in a procurement process?
 Who are the key players in a procurement process?
Government tender
From our previous icebreaker (Guess the
person), were there those who provide
the government with supplies such as
stationaries, construction materials,
consultancy services, transport services
etc.? How many from the list of
entrepreneurs named during the ice
breaker were women, people living with
disabilities, and youths? What can you
learn from the icebreakers?
From this discussion, what is a government tender?
LESSON 3 – SECTOR WHERE AGPO APPLIES
Group participants in groups of 3 in each group.
Give out a task of identifying the institution under
county government and national offering AGPO.
This task should take a maximum of 20 minutes. Call
the participants after the elapse of the period and
ask a few participants from different groups to share
some of the institutions that they generated in their
group discussion.
[FacilitatorTips]
A government tender is a formal
invitation by the government to
suppliers and/ or contractors for
the supply of goods, services and
works.
[FacilitatorTips
Procurement
Procurement refers to the various
processes or procedures that are
utilized in the acquisition of goods,
services and works.
[FacilitatorTips]
In groups of 3 participants per
group, let them identify
organizations/institutions in their
area where “Access to
Government Procurement
opportunities” applies.

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This session may be guide by questions like;
 How many organization/institutions abide by Access to Government Procurement
Opportunities?
 Are they Government institutions or Non-governmental institutions or both?
Note: Access to government procurement opportunities is applicable to all government
institutions nationally. The use of local examples of institutions in the area where
participants come from, gives them a better understanding of the concept. This would
therefore encourage application of the concepts to own business.
LESSON 4 – REQUIREMENTS TO ACCESS GOVERNMENT PROCUREMENT
OPPORTUNITIES
Can a youth group or women group apply for Government’s tender?
Participants needs to have a clear picture of the nature/form of legal organizations
and groups that can participate in government tendering process
Most of the Kenyan Youths are in registered youth groups, while most women are in
registered women groups. It will
therefore be of great significance to have
participants learn on women groups and
youth groups alongside other legal
organizations/groups, identify those that
are eligible government tendering
process, and can participate in Access to
Government Procurement Opportunities
(AGPO).
What type of entity do I need in order to apply
for Government’s tender?
In order to apply for the government
tenders, you need registered entities such as;
 Registered sole proprietorship,
 Registered partnership business,
 Limited Liability Company.
These entities must therefore have the
following;
 Copy of registration certificate
 PIN/VAT certificate
 Tax compliance certificate
[FacilitatorNotes]
The answer is NO.
Youth groups, community based
organizations (CBO) women
groups etc., are not eligible for
government’s tender.
They are not eligible for
government tender because
they are only registered by the
social services department, yet
to do business with the
government, you need to have
been registered by the office of
the registrar of companies as a
business or limited company.
Besides they are not registered
by the Kenya Revenue Authority
(KRA) for tax remittance.

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And when interested to be considered for
Access to Government Procurement
Opportunities, you will be needed with AGPO
certificate in addition.
What do I need to qualify for AGPO
Certificate?
For the purpose of benefiting from
the preference and reservations
schemes (AGPO), an enterprise
owned by youth, women or persons
with disabilities shall be a legal
entity. Thereafter apply for AGPO
certificate.
What are the requirements you need
in order to qualify for an AGPO
certificate?
NB: For online application of AGPO
certificate, the required documents
must be uploaded via www.agpo.co.ke:
MODULE DEBRIEF
From our session today, can a church youth group do business with the government?
What makes them and what does not make them be better placed to do business
with the government?
From this community, what some of the organizations and institutions that offer
access to government procurement opportunities?
What do you require in order to access government procurement opportunities?
[Facilitator Tips]
RequirementsforAGPOCertificate
 Registration certificate/Certificate
of incorporation/partnership
deed.
 Valid Tax Compliance Certificate.
 Valid PIN/VAT certificate.
 Bank account details
 Identification Cards (ID Cards) as
proof of being a youth (aged
between 18-35 years), women or
PWD as may be applicable.
 Business /company profile
 Exemption certificate (e.g. for
PWDs)

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MODULE 2, BUSINESS REGISTRATION
Timing minutes
Preparation  Read through the module to get a sense of the flow and to
gain an understanding of what happens
 Work through the exercises as if you are a Participant to
develop examples or samples for explanations
 Read through the module and add notes and your own
phrasing and explanations to any complex concepts
 Look for relevant examples of legal procedures within the
county of operation.
 Classify various businesses in terms of legal forms,
 Register new business,
 State other legal business requirements/documents
 Facilitation
 Assigned tasks.
Purpose This module enables Participants to have understandings on the various
forms legal businesses in Kenyan, understand business registration
process, identify all the legal documentations and registrations necessary
to operate a business within the operating county.
 Flip chart
 Sticky notes
 Markers
Module
sections
Introduction 5 mins
Identifying forms of legal
business in Kenya
55 mins
Business Registration process 45 mins
Other legal Requirements 20 mins
Debrief 10 mins
Notes:

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MODULE INTRODUCTION – 5 MINS
In this module, Participants will identify and discuss the various forms of legal businesses in
Kenyan, discuss the business registration process, identify all the legal documentations and
registrations necessary to operate a business within the operating county and to explore the
various business financing options.
LESSON 1: FORMS OF LEGAL BUSINESSES IN KENYA – 25 MINS
You now know enough about the benefit of doing business with the government and the
types of goods you can sell to the government through a procurement process. To be
successful, it is important to identify the various type of business, their structure, advantages
and disadvantages. Therefore, it’s good to know these facts as a starting point, before you
register your business, because you want to be sure you have chosen a business type that will
suit your need as an upcoming business person.
Ndekezi and friends story
Ndekezi, 25 years old, stays in Lodwar, Turkana County. Ndekezi runs a small kiosk, where he
sells products that serve his immediate community. He run this business alone, such that
when he is committed to his farm, or goes on a journey, his business remains closed, and
eventually affects his customers greatly. He started this business with personal savings,which
he topped with money from his father. Even though he got the capital, it was not enough to
launch his business as he had initially planned, since the capital was insufficient and as well
he did not have other sources of capital at his discretion.
One day at a Trade Fair organised by the government and other stakeholders and held in
Machakos County, Ndekezi met his former school mates, Kioko, Odoyo, Mwangi and
Cherotich.
Kioko and Odoyo are currently running a stationery business in partnership, while Mwangi
and Cherotich, registered a Limited Liability Company one year ago.
During their discussions about their businesses, Kioko and Odoyo were boasting of how easy
it was to form their partnership, pulling resources together, availability of diverse skills and
expertise, the risks are share between them as well as having close supervision to their
business, and reduced management cost.
Ndekezi on his business is proud of having all the profits for himself, making quick decision
since there is no one to consult or have a discussion with, and that he needed to follow few
procedures to setup. The main challenges that Ndekezi faces are difficulties inraising financial
capital, and difficulty in attracting investors.

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Mwangi and Cherotich, on their side were happy that they were easily accessing loans from
banks, winning most of the tenders
reserved for the youths, women and
people living with disability. To
them, doing business became fun
and that they had employed two
people to help them run their
business successfully. They
however, highlight the difficulties
they encountered when they were
registering their limited Company.
Hey saythe process was tedious and
took them a longer period. Besides
they talk of substantial amount
required for registration.
Discussiontasks
From the above story,whatare some of the advantagesof
the type of businessthatNdekezi wasoperating?
Identifythe similaritiesanddifferencesbetweenthe
businessthatKiokoandOdoyowere runningtothe one that
Mwangi and Cherotichoperated?
What are the difficultiesencounteredinregisteringalimited
liabilitycompanyinKenya?
If you were tobe giventhe businessoptionsmentionedin
the story,identifythe optionyouwouldprefermost,giving
reasonsforit?
LESSON 2: BUSINESS REGISTRATION – 80 MINS
Registration of new businesses in Kenya follow certain
procedures. It is very crucial for individuals who are
planning to have their businesses registered to be well
acquainted with the procedures. The procedure include
conducting a name search to your business name, having all the necessary documentations
and duly filling all the required forms.
[FacilitatorTips]
The lessonshould be
coveredusinggroup
discussionapproach
Divide participantsto3 or 4
groups,
Participantstotake 45 mins
generatingideasintheir
groups.
Afterthe ellapse of 45 min
call back the participantand
have the groupsshare the
pointsthateach groupcame
up with
Name Search
When you want to register a business in Kenya
the first thing you need to do is conduct a name
search. This is a must for all businesses. It costs
Kshs. 100 per name and it takes three days. It is
advisable to search for more than one at a time
so as to save on time. The company name
reservation lasts 30 days and can be renewed
for a similar period.

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Partnership/Sole Proprietorship/ Limited Company Registration Process in Kenya
Having a resource person to handle this lesson will be most crucial. Participants under the
guidance of the facilitator will pay a visit to the relevant government authorities that play
various roles in youth empowerment. These Authorities include Sub County youth offices,
County Youth offices under county government as well as National government.
Participants would be able to inquire on the process followed when one would like to register
either a sole proprietorship, a partnership or a limited liability company.
Participants would be able to ask clarification on the need for name search.
As a facilitator, request the Officer being visited to avail the forms necessary for business
registration, so that participants can have a look at them and know them. Participants who
are willing to start the process of registration can therefore photocopy these forms, so as to
begin the process of registering their businesses. This will also be the right place where
participants could ask about the approximate cost that could see them through the
registration process. Further, they should inquire the nearest places where they could register
at.
LESSON 3: OTHER LEGAL BUSINESS DOCCUMENTS
What are the regulatory regulations in operating
businesses in Kenya?
Once a business has been registered, there are
other legal requirements that these businesses
are required to meet. Some of these
requirements are specific to the business types.
This session will map them out in a tabulated
form or approach.
MODULE DEBRIEF
You just discussed the other regulatory
requirements in running various businesses in
Kenya.
Which type of legal requirement is common
among many businesses owned by the young
people in your community?
Why should your business comply with these requirements?
Has your interest in business changed following what you learnt?
If so, in which way?
What are your plans moving forward?
Facilitation Tips
It is recommended that in this
section, the Facilitator should
make prior arrangements with an
officer from Sub County Youth
office/County Youth office.
If possible the facilitator to visit
the Youth Offices, for
participants to be able to seek
clarification from the authorities
concerned. This will enrich the
content delivery of this section.

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MODULE 3, FINANCING OPTIONS
Timing minutes
Preparation  Read through the module to get a sense of the flow and to
gain an understanding of what happens
 Work through the exercises as if you are a Participant to
develop examples or samples for explanations
 Read through the module and add notes and your own
phrasing and explanations to any complex concepts
 Look for relevant examples of legal procedures within the
county of operation.
 Identify the various financing options available to them in their
local context
 Establish the eligibility criteria of the identified financial options
 Facilitation
 Assigned tasks.
Purpose This module enables Participants to explore the various business
financing options, available to participants in their local communities in
Kenya as well as the eligibility criteria for each.
 Flip chart
 Sticky notes
 Markers
Module
sections
Introduction 15 mins
Business Financing Options 75 mins
Debrief 15 mins
Notes:

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INTRODUCTION – 15 MINS
In Kenya currently there are and a number of financing options, in addition to the
mainstream financial institutions such as Banks, Micro-finance Institutions and SACCOs.
Most of these options are as a result of government interventions to promote
entrepreneurship among the young people and women. Some of these interventions
include Youth Enterprise Development Funds, UWEZO Funds, and Women Enterprise Funds
among others.
At this stage have the participants generate a list of other programs by the government,
NGOs or churches meant to provide financial services in the local community where they
come from.
Generation of these programs at the community levels should take not more than 15
minutes.
LESSON 1: BUSINESS FINANCING OPTIONS – 75 MINS
Participants need to be well informed of the financial options for their businesses. Some of
them are not aware of what the below financial services can offer to the. Therefore, a well-
coordinated discussion along this line of thought would help in increasing the uptake to the
available funds.
A few options will be discussed in this lesson and participants will required to come up with
eligibility criteria in each of these option;
Youth Enterprise Development Fund (YEDF)
The on-lending component of the
Fund mainly works through Financial
Intermediaries such as banks, Non-
Governmental Organizations
(NGOs), Savings and Credit
Cooperatives (SACCOs), and Micro
Finance Institutions (MFIs). The
youth will access funds directly
either as individuals or as organized
entities such as groups,
cooperatives, companies among
others.
[YEDF Eligibility Criteria]
The loan targets all forms of youth owned
enterprises (individual, companies, groups,
cooperatives or otherwise), Loan is accessible to
any youth owned enterprise operating within the
district, The loan is managed by Financial
Intermediaries, The loan attracts interest rate of
8% per annum, Very flexible (soft), if any,
collateral required, The loan amount is dependent
on the nature of business proposed and the
lending terms of the Financial Intermediary; 7.
Financial Intermediary seeks approval for loan
amount exceeding Ksh. 500,000

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In groups of 3, discuss and record in your note books the eligibility criteria for access Youth
Enterprise Development Fund. This should take you 20 minutes
NB: More information on Youth Enterprise Development Fund Can be obtained from:
http://www.youthfund.go.ke/
Women Enterprise Funds
What is women enterprise funds?
Women Enterprise Fund is a Semi-Autonomous Government Agency in the Ministry of
Devolution and Planning (formerly in the Ministry of Gender, Children & Social
Development) established in August 2007, to provide accessible and affordable credit to
support
women start and/or expand business for wealth and employment creation. The Fund also
provides business support services such as capacity building, marketing, promotion of
linkages and infrastructure support. (http://www.wef.co.ke/)
Capacity Building of Women entrepreneurs
The Fund achieves capacity building of women entrepreneurs through the volunteerism
concept. The Fund works with volunteers at constituency level whose roles include
recruiting women, training them and monitoring their projects and loan repayment.
The volunteers are thus tasked with recruiting and training the Fund’s beneficiaries on a
curriculum that covers various areas including:
1. Business skills
2. Market Access
3. Basic ICT skills
Again in a group of 3, discuss and record in your note books the eligibility criteria for access
Women Enterprise Fund. This task should also takes you 20 minutes to accomplish.
UWEZO Fund
Uwezo Fund is yet another fund that comes as a result of government intervention. It is a
flagship programme for Kenya’s vision 2030 aimed at enabling women, youth and persons
with disability access finances to promote businesses and enterprises at the constituency
level, thereby enhancing economic growth towards the realization of the same and the

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Millennium Development Goals No.1 (eradicate
extreme poverty and hunger) and 3 (promote
gender equality and empower women).
The Fund is meant to expand access to finances
and promote women, youth and persons living
with disability led enterprises at the
constituency level. It also provides mentorship
opportunities to enable the beneficiaries take
advantage of the 30% government procurement
preference through its Capacity Building
Programme. Uwezo Fund, therefore, is an
avenue for incubating enterprises, catalyzing
innovation, promoting industry, creating
employment, and growing the economy.
(http://www.uwezo.go.ke/)
Now we are going to identify the objectives of
the funds.
Why was this fund established? This task should
take not more than 10 minutes.
Eligibility Criteria for Applicants.
What does an applicant need
in order to qualify for Uwezo
Fund loan?
Now in a group of not less than
3 and not more than five, come
up with eligibility criteria for
accessing Uwezo Fund.
This task should be done in two
categories. The first category
should be eligibility criteria for a
group such a youth group,
women group or a group
owned by person’s living with
disabilities. This task should
take between 25 to 30 minutes.
[Objectives of UWEZO funds
1. To expand access to
finances in promotion of
youth and women
businesses and enterprises
at the constituency level for
economic growth towards
the realization of the goals
of Vision 2030;
2. To generate gainful self-
employment for the youth
and women; and
3. To model an alternative
framework in funding
community driven
development.
Facilitator Tips (Eligibility Criteria)
(a) For a group
1. Is registered with the department of social
services, Cooperatives or the Registrar of
Societies
2. Has members aged between 18 and 35 years
whereas the women’s groups shall be made up of
women aged eighteen years and above
3. Is based and operational at the constituency it
seeks to make an application for consideration
4. Operates a table banking structure or any other
group fund structure where members make
monthly contributions according to the groups’
internal guidelines (evidence of monthly
contributions shall be a requirement);
5. Hold a bank account in the name of the group.
(b) For an institution
1. Is a registered entity
2. Has listed youth and women groups within it.

AGPOv.1
20
Every member of a group discussion should be as active as possible. As a facilitator, ensure
that every participant benefit from group task.
NB: For more information on eligibility criteria, go to: http://www.uwezo.go.ke/how-to-
apply
LPO Financing
LPO isanotherapproach thatcan usedbythe supplierstofinance the tenderthattheyhave secured.
We will learnmore onLPOfinancinginournextclass.
MODULE DEBRIEF
What are some of the business financing options available in this community?
To secure business financial service from Youth Enterprise Fund (YEDF) what are the
eligibility criteria?
What are the main objectives of Uwezo Funds?

AGPOv.1
21
MODULE 4, LPO FINANCING
Timing
minutes
Preparation
 Readthroughthe module togeta sense of the flow andto
gainan understandingof the keyconceptsandterminologies
 Work throughthe exercisesasif youare a Participantto
developexamplesorsamplesforexplanations
 Readthroughthe module andaddnotesand yourown
phrasingandexplanationstoanycomplex concepts
Outcomes In thissession,Participantswill be able to:
 Define whatLPOFinancing is,
 Give the advantagesof LPO Financing,
 Give the Requirementsof LPOFinancing,and
 Identifysome of the InstitutionsofferingLPOFinancingservices in
theirareas.
 Facilitation
 Assigned tasks (Individual assignment).
Purpose This module enables Participants to have understandings on the LPO
Financing and some of the various financial institutions offering LPO
Financing services in Kenyan, as well as the requirements needed
for an individual to secure LPO Financing for tender.
 Flip chart
 Markers
Module sections Introduction/welcome 15 mins
LPO financing, anditsusers 40 mins
LPO Financingrequirements 80 mins
Debrief 15 mins
Module notes:

WELCOME
In this module, Participants are going to learn and understand
more on the LPO Financing, some of the various financial
institutions in their local areas, offering LPO Financing services,
as well as being able to identify and list the requirements
needed for an individual to secure LPO Financing for tender.
LESSON 1 – LPO FINANCING
In this lesson, participants will learn about Local Purchase
Order (LPO) as an alternative financing to tender work.
This will enable participants have variety of options that they
can use in to finance their mega business activities, especially
doing business with the government, which normally require a
big capital outlay and payments is always done upon
completion of the business/contract.
What do you understand when you hear about LPO?
Purchase order financing is a short-term commercial finance
option that provides capital to pay suppliers upfront for
verified purchase orders.
In light of these statement, identify some of the benefits that
business men in your community get from LPO financing?
Who uses it?
Purchase Order financing is designed for growing businesses
that want to fulfill large orders. They have little access to
working capital and/or poor cash flow.
Facilitator to ask questions that will arouse participants into
identifying individuals and originations in the local
environment who the beneficiaries of LPO financing.
The condition on whether to offer the service to a startup or
an established business on the offering financial institution.
Giving clear reasons and example, participants need to
identify some of the differences that exist between LPO
financing and traditional ways that businesses and
organizations used to finance their projects and ventures.
FacilitationTips
Some of the people or
institutionsusingLPO
servicesinclude;
 Manufacturer
 Distributor
 Wholesaler/reseller
 Importer/exporter
FacilitationTips
Use facilitationapproach,to
handle thislesson.Involveall
the participantsasyou make
the sessionasinterestingas
possible.

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LESSON 2 – LPO SERVICES OFFERING INSTITUTION
Now divide participants into groups of manageable sizes.
In these groups participants are going to take 20 minutes
discussing and exploring the benefits /importance of
using LPO as a means to finance tender.
During this exercise, participants will raise their ideas in
a group, but however record in note books individually.
When 20 minutes are over, let the participant stop the
exercise.
Add them another 20 minute. This time round they are
going to use this time to explore some of the challenges
that accompany the use of LPO financing.
Let them list also these challenges in their note books
individually, but discussing in a group.
Finally, at the end of the time allocated, let participants
give the points they had raised in group discussions, as you list
them on the flip chart in the next 20 mins.
MODULE DEBRIEF
What didyou learntodaythat youdidn’texpecttolearn?
What isdifferentfromyourearlierexpectationsof the course and
the expectationsyouhave now?
What wouldyoulike toshare aboutthe experience?
So whatwouldyougive LPOFinancinga trial?
How doyou expectthisexperience will helpyourealizeyour
learningandgrowthgoals?
What more do youwant to knowaboutthe course or the course
topicat thispoint?
INDIVIDUAL WORK
Take yourtime and visit the nearestFinancialInstitution and inquire
whetherthey offerLPO Financing Service.
If they offerLPOFinancing services whataretheir conditionsto the
beneficiaries,
Whatare the benefitsof their LPO financing,
Howlong doesit take forthe actualization of the LPOFinancing from
the time of application?
FacilitationTips
 Benefits of LPO
financing:
 Immediate access
to the proceeds of
sales
 Simple operational
procedures
 Cheaper additional
working capital
 Simplified security
requirements

AGPOversion1
APPENDICES
Appendix 1: Specific requirements for operating business
in Kenya
Requirement How often
(frequency)
Businesses
applicable
Businesses
applicable
Single business Permit Every year All businesses
in Kenya
County
Government.
Trade License
Issued under Trade
Licensing Act (Cap 497).
One has to provide:
- A tenancy agreement/ lease/ or title deed
of the business premises;
- identity card or passport
- Personal Identification
Number (PIN);
- Certificate of incorporation or certificate of
registration of business name.
Every year All
businesses.
Ministry of
Trade and
Industry
Value added Tax (VAT) No. Once All businesses KRA
Personal Identification Number (PIN) Once All businesses KRA
National Social Security Fund (NSSF) No Once All businesses
employing
more than 5
workers
(NSSF),
Ministry of
Labour.
National Hospital Insurance Fund (NHIF) No. Once All businesses
employing
more than 5
workers
NHIF
Ministry of
Health
Environmental Impact Assessment No. Every year All
manufacturin
g and
processing
businesses
National
Environmental
Management
Authority
(NEMA).
Source: Kenya’s Hand Book for local Investors viewed from:
(http://www.investmentkenya.com/resources/publications?do
wnload=8:handbook-for-local-investors)
Appendix 2: Additional requirements for operating
specific businesses in Kenya
Business type Requirement How often Responsible
Agency

AGPOversion1
Horticultural
products.
- Export permit
- Compliance to traceability of
produce, hygiene, Maximum
Residue Level
(MRL), Good Agricultural Practices
(GAP) and proper post-harvest
handling procedures.
Every time
exports are
made
Horticultural
Crops
Development
Authority (HCDA).
Live animals
export
Health Clearance Certificate Every time
exports are
made
Department of
Veterinary
Services.
Motor vehicle
components or
accessories.
Dealers license Every year. County
Government
Used motor
vehicles.
Buying or selling business license.
-Certificate of Roadworthiness for
used vehicles originating from Japan
and Dubai.
Every year.
Every time
imports are
made.
County
Government,
Ministry of
Transport
Public transport - Public carriers license
- Road license
- Transport Business License
(TBL)
Every year
Every year
Every year
Ministry of
Transport,
KRA
Scrap metal License under Scrap Metal Act. Every year Ministry of Trade
and Industry
Fishing - Certificate of registration of
fishing vessel.
- License to catch fish under
Fisheries Act.
Every year
Every year
Department of
fisheries.
Processing and
Export of Fish.
- Processing license
- Fish movement permit
- Certificate of compliance with
KEBS for fish handling and
processing
- Export permit
- Health certificate.
Every year
Every time
exports are
made.
Department of
fisheries.
Hotel/ restaurant
business.
- Hotel/ restaurant license.
- Restaurant manger’s
license
- General retail liquor license.
Every year County
Government after
providing a
certificate of
health.
Food business
(selling, reparing)
License to use premises for that
purpose.
Every year County
Government
Milling of Maize Miller’s license Every year National Cereals
and

AGPOversion1
Produce Board.
Coffee buying,
selling, milling,
warehousing or
exporting
License to carry out the relevant
transactions.
Movement permit.
Every year Ministry of
agriculture
Dairy - Registration under the Dairy
Industry Act.
- Dairy manager license.
- Registration of premises as a
dairy. - Milk Purveyor license.
Every year Department of
Veterinary
Services.
Hides, skin and
leather.
- Buyer’s license.
- Exporter or importer license.
- Registration certificate for the
premises under Hides,
Skin and Leather Trade Act.
Veterinary
Services
Bacon factory License under Pig industry.
- License to slaughter Pigs.
- License to keep pigs.
Veterinary
Services
Appendix 3: Regulatory requirements for MSEs
Requirement How often
(frequency)
Businesses
applicable
Businesses
applicable
Hawking. - License
Given on production of:
• Identity Card
• Certificate of good
conduct
- A fee depending on the
County in each county.
- Hawking to be done on
designed areas
Every year County
Government

AGPOversion1
Bulk agro
businesses
Including
• Vegetables
• Fruits
• Grains
• Potatoes
• Tomatoes
- License
- Pay a fee depending on
county’s rates
- One operates in a
designated market in cities or
towns e.g.
Wakulima Market in Nairobi.
-Every year
-Every time
one sells
from the
markets.
County
Government
Jua kali products
including:
Motor mechanic
Engineering
Manufacturing
industries
- Single business permit
- Fee
- One operates in
designated areas, or in,
- Jua kali sheds
Every year
Monthly fee
as per the
county’s rate
County
Government
Paper & paper
products, printing &
publishing
- Single Business Permit given
on production of:
• Physical address
• Certificate of good conduct
Every year County Government
Textile, wearing
apparels & leather
product shops
- Single Business Permit given
on production of physical
address
Wood, wood
products and
carpentry
Single Business Permit Every year Ministry of
Environment,
County Government
Whole sale & retail
trade
- Single Business Permit
- Trade License
Restaurant and
hotels
- Single Business Permit
- Trade License
and Ministry of
health.
Textile and tailoring - Single Business Permit
- Trade License

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