Terms of Reference for Recruitment of Technical Advisor, Monetary Operations and Securities Markets Development
1. Introduction and Background:
For the Central Bank of Kenya (CBK) to adequately and effectively play its part in achieving the aspirations of Vision 2030, the Bank is positioning itself by strengthening key departments in order to become a strong institution to deliver its core mandates.
Nevertheless, the Bank has limited capacity in core area like Research, financial market development and currency development. The Bank therefore aims at developing its own in-house capacity in these strategic and core areas.
It is in this regard that the Bank requested technical assistance from the European Commission (EC) and UNDP to strengthen its Monetary Operations and Debt Securities Department. The technical assistance is aimed at improving the Bank’s monetary policy implementation capacity and promoting and deepening of domestic debt markets.
The technical assistance will be in form of a Advisor on matters related to monetary policy implementation capacity and development of the securities markets. In addition, the Technical Advisor will provide advice and cultivate partnerships with the market players.
The Technical Advisor is expected to liaise with the Director of the Department in building capacity and also provide input in all areas of monetary policy implementation, legal framework, debt management and bond markets.
2. Objective of the assignment:
The overall objectives for the project are:
i. Strengthening and developing the analytical capacity of the Monetary Operations and Debt Securities Department.
ii. Designing a training program consisting of theoretical and applied seminars. The role of the Advisor would be to identify and organize appropriate training including on the job training, seminars, study tours and internship outside the Bank geared to harnessing the latest techniques in monetary policy analysis and securities markets development and will entail:
a) Enhancing staff skills in creating a vibrant bond market.
b) Promoting innovativeness in the financial sector to provide appropriate products for different segments of the market.
3. Scope of work:
a) Strengthen and develop the analytical capacity of the Department.
b) Spearhead the development of bond instruments in both primary and secondary markets, yield curve estimation and analysis as well as securities markets development with the attendant legal and operational framework necessary for establishment of efficient primary dealership and market-making systems.
c) Monitor and analyze securities markets; the macroeconomic policy development and implementation as well as develop policy options to address deviations from monetary programs and targets agreed with Government.
d) Undertake strategic planning and reforms for the securities markets and strategic communication platforms required by the market.
e) Promote and deepen domestic securities markets and its functional trading.
f) Develop appropriate measure to ensure enhanced security management in the banking system.
g) Risk management in securities market management, strategy/products instrument design as well as refinement of legal aspects of money laundering and debt trading.
4. Outputs:
The outputs of this assignment shall include: -
For the Central Bank of Kenya (CBK) to adequately and effectively play its part in achieving the aspirations of Vision 2030, the Bank is positioning itself by strengthening key departments in order to become a strong institution to deliver its core mandates.
Nevertheless, the Bank has limited capacity in core area like Research, financial market development and currency development. The Bank therefore aims at developing its own in-house capacity in these strategic and core areas.
It is in this regard that the Bank requested technical assistance from the European Commission (EC) and UNDP to strengthen its Monetary Operations and Debt Securities Department. The technical assistance is aimed at improving the Bank’s monetary policy implementation capacity and promoting and deepening of domestic debt markets.
The technical assistance will be in form of a Advisor on matters related to monetary policy implementation capacity and development of the securities markets. In addition, the Technical Advisor will provide advice and cultivate partnerships with the market players.
The Technical Advisor is expected to liaise with the Director of the Department in building capacity and also provide input in all areas of monetary policy implementation, legal framework, debt management and bond markets.
2. Objective of the assignment:
The overall objectives for the project are:
i. Strengthening and developing the analytical capacity of the Monetary Operations and Debt Securities Department.
ii. Designing a training program consisting of theoretical and applied seminars. The role of the Advisor would be to identify and organize appropriate training including on the job training, seminars, study tours and internship outside the Bank geared to harnessing the latest techniques in monetary policy analysis and securities markets development and will entail:
a) Enhancing staff skills in creating a vibrant bond market.
b) Promoting innovativeness in the financial sector to provide appropriate products for different segments of the market.
3. Scope of work:
a) Strengthen and develop the analytical capacity of the Department.
b) Spearhead the development of bond instruments in both primary and secondary markets, yield curve estimation and analysis as well as securities markets development with the attendant legal and operational framework necessary for establishment of efficient primary dealership and market-making systems.
c) Monitor and analyze securities markets; the macroeconomic policy development and implementation as well as develop policy options to address deviations from monetary programs and targets agreed with Government.
d) Undertake strategic planning and reforms for the securities markets and strategic communication platforms required by the market.
e) Promote and deepen domestic securities markets and its functional trading.
f) Develop appropriate measure to ensure enhanced security management in the banking system.
g) Risk management in securities market management, strategy/products instrument design as well as refinement of legal aspects of money laundering and debt trading.
4. Outputs:
The outputs of this assignment shall include: -
- Recommend reforms in bond market development.
- Preparation of various documents e.g. Work Plans, Training Needs Assessment Reports, Inception and Visibility Plans.
- An agreed timetable for a three-year training program, including seminars, internships and study tours within two months after signature of the contract.
- Prepare database of relevant trainers/experts, courses and training facilities.
- Establish links with foreign Central Banks and other relevant institutions for the purpose of longer-term capacity building.
The Advisor will be engaged to work on this exercise, in the Monetary Operations and Debt Securities Department.
The consultancy may involve travels in and out of the country and a detailed work plan will be prepared (as part of the inception report) by the Advisor for approval one month after the award of the contract.
6. Duration:
The duration of the exercise will be eight months from May 1, 2010 to December 31, 2010. The Advisor will be engaged on full time basis during this duration. The consultant will be paid on a monthly basis.
7. Consultant Competencies:
The Consultant contracted for this assignment will have the following competencies:
a) An advanced degree in Finance, Economics or Business Management or a related field with a bias in Public Finance; Investments and Finance and International Finance. A PhD degree will be an added advantage.
b) A minimum of eight (8) years’ relevant experience in areas like: legal and financial risk management, monetary and financial markets operations and policy analysis. Particular experience in areas related to design and implementation of securities markets development and sovereign wealth fund management is highly desirable.
8. Application process:
Applications marked “SSA/UNDPKEN/002/2010: TECHNICAL ADVISOR, MONETARY
OPERATIONS AND SECURITIES MARKETS DEVELOPMENT “ should be dropped at the UNDP TENDER BOX placed at the main entrance reception of UN Complex in Gig in and addressed to:
The Deputy Country Director (Operations)
United Nations Development Programme Kenya,
Block Q, UN Complex Gigiri, P0 Box 30218, 00100
Nairobi, Kenya
The closing date for submission is Tuesday, 20th April 2010 at 12.00 noon Kenya time.
