Terms of Reference: Tax Justice for Climate Action in Africa Resource Resource-Rich Countries

Background

ActionAid International Kenya (AAIK) is a non-partisan, non-religious development organization that has been working in Kenya since 1972 to end poverty and injustices. AAIK is among the leading anti-poverty agencies in Kenya, having a presence in 22 counties, working directly with over one million people living in poverty and exclusion. We are unapologetic in advancing Women’s Rights and ensuring that Women Living in Poverty and Exclusion are at the center of our work. AAIK also commits to youth engagement and community accountability.

AAIK implements the Danida Strategic Partnership 2 program in partnership with ActionAid Denmark. The programme aims to ensure that “societies are transformed to become more just, feminist, green, and resilient”. The programme runs in 7 counties: Nairobi, Isiolo, Kilifi, Garissa, Turkana, Baringo, and Nanyuki.  We are in year 4 of implementation, and the programme will end in 2026. It is under this program that we seek to undertake a consultancy towards understanding the Kenya’s national fiscal policies related to the extractive sector, focusing on their effectiveness in maximizing funding for climate action and promoting sustainable mining.

Context

Kenya, like many African nations, is endowed with abundant natural resources, particularly in the mining sector. However, the country faces significant challenges in domestic resource mobilization (DRM) for climate action amidst economic constraints and debt servicing obligations. The African Union’s Africa Mining Vision (AMV) and its related frameworks emphasize the need for effective revenue management and the prevention of illicit financial flows. The recent introduction of the Africa Green Minerals Strategy highlights the need for Kenyan fiscal policies to adapt to support sustainable development and a just transition to renewable energy. ActionAid and Tax Justice Network Africa are seeking to assess Kenya’s fiscal policies in the extractive sector to enhance tax revenue for financing climate action.

Scope of the Study

The consultant will be expected to conduct a thorough analysis of Kenya’s national fiscal policies related to the extractive sector, focusing on their effectiveness in maximizing funding for climate action and promoting sustainable mining. Key areas of focus include:

• Legislative frameworks governing resource mobilization from extractives
  • Climate policies governing the extractive
  • Discretionary fiscal incentives and transparency issues
  • International and regional fiscal and revenue policy alignments
  • Recommendations for improving revenue collection within the industry
  • Comparative analysis of the countries with better practices

The Objectives and Scope of the Role

1. To evaluate the current national fiscal policies governing Kenya’s extractive sector.
2. To assess the alignment of these policies with sector the principles of the AMV, particularly regarding climate responsiveness.
3. To identify gaps and recommend improvements in fiscal policies to enhance DRM for climate action.
4. Key Questions:
5. Can you identify the most mined and exported mineral(s) in the country?
6. What is the link between the companies involved in mining companies and the TNCs? From which countries do the large-scale companies come from?
7. Are you aware of the community development committees? If yes, how can they be strengthened to play a key role on climate action if the companies were to give monies for climate action?
8. Is there a national depository for revenue for the extractive sector?
9. Do you think that the mining laws should have provisions for restoration of the environment?

Scope of the Role

The consultant will conduct desk-based secondary research and engage with key stakeholders in Kenya to gather insights on the fiscal landscape of the extractive sector. This will involve synthesizing findings into a report that supports advocacy and decision-making processes.

Deliverables

1. The consultant is expected to produce the following deliverables:
2. A comprehensive report (10-15 pages) addressing the outlined research areas.
3. An executive summary (1 page) highlighting key findings and recommendations.
4. A presentation of findings to stakeholders.
5. 1-pager infographics publication based on the objectives of the study.

Methodology

The research will primarily rely on desk-based secondary research, utilizing existing reports, policy documents, and data from relevant organizations. Key stakeholder interviews may be conducted to fill gaps in available information. The consultant is expected to:

1. Analyse relevant legislation and policy documents.
2. Review reports from civil society organizations and regional frameworks.
3. Ensure comparability with findings from other target countries.
4. Ensure comparability with findings from other target countries.

Timeframe

The consultancy will last for 15 days, starting from the date of the contract signing. The key milestones are:

• Submission of a draft report by Day 7.
• Validation workshop by day 12
• Final report submission by Day 15.
• Present the findings of the report as part of a workshop with technical and project partners by 30th July 2025.

Qualifications and Experience

1. A master’s degree or PhD in economics, public policy, environmental science, or a related field.
2. Possess 5yrs – 10yrs proven experience in resource governance, fiscal policy analysis, extractives and climate finance.
3. Familiarity with Kenya’s extractive sector and related legislative frameworks.
4. Strong research and analytical skills, with the ability to communicate complex ideas clearly and simply.
5. Strong writing skills and ability to produce high-quality reports with facilitation skills engaging a variety of stakeholders
6. Highly skilled in infographic analysis of complex ideas into simple to read and understand for decision making process and advocacy engagements.

Reporting

The consultant will report to the designated Programme Coordinator at ActionAid Internation Kenya’s office. Regular updates on progress and challenges faced during the research process will be expected.

Budget and Compensation

Compensation will be commensurate with the consultant’s experience and will be discussed during the application process. The budget will cover the consultants’ fees, and any associated costs related to the research.

Evaluation

The consultant will be evaluated based on.

1. Price (budget proposal) 40%
2. Experience 50%
3. Academic Qualifications 10%

Application Process

Interested consultants are invited to submit:

1. A cover letter outlining their qualifications and experience.
2. A proposed methodology for the study.
3. A CV detailing relevant work experience.
4. Submit 3-Sample reports or publications of similar work.
5. A financial proposal indicating daily rates and total costs.
6. References from previous clients (minimum of 3)
7. Submit 1 infographic analysis report.

Submit applications to: procurement.kenya@actionaid.org. The Electronic Application Documents should be submitted by Friday, 18th July 2025, 13:00hrs.

Note: Please note that the applications that will be incomplete or submitted late will be disqualified. The consultant is expected to cover all the costs related to traveling, accommodation, insurance, taxes, and any other liabilities and fees related to this work.

This ToR aims to guide the selection of a consultant who will effectively contribute to understanding and improving Kenya’s fiscal policies for enhanced Domestic Resource Mobilization in the extractive sector