Fund for Local Cooperation (FLC): Call for Circular Economy Project Proposals, June 2025

The Embassy of Finland in Nairobi hereby invites Kenyan civil society organizations and private sector companies to submit proposals to apply for funding from the Fund for Local Cooperation (FLC), with a focus on advancing circular economy in Kenya. FLC is a development cooperation instrument managed by the Embassy in Nairobi. The fund provides grants to well-defined projects in selected priority areas of Finland in Kenya. The support is intended for project-based support only.

Background to this Call for Proposals

The Fund for Local Cooperation is governed by Finnish legislation and policies, particularly the Act on Discretionary Government Grants (688/2001) and the FLC Internal instructions (6/2014) of the Ministry for Foreign Affairs (MFA) of Finland.

Finland pursues development policies and co-operation that yields sustainable results, with a positive impact on the development of societies and on people’s lives. The respect and promotion of human rights is a key principle guiding Finland’s development policy and co-operation.

Call focus: Advancing Circular Economy in Kenya

Circular economy is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible. Kenya's Vision 2030 and its Climate Change Action Plan prioritize green growth, job creation, and environmental sustainability. In recent years, Kenya has introduced policies to address waste-related problems and legislative frameworks to advance climate action, and circular economy companies have emerged especially in the fields of waste management and recycling. However, work is needed to mainstream circularity into the broader economic policy framework and into the practices of a larger segment of companies. Small and Medium-sized Enterprises (SMEs) are key drivers of innovation and employment but face capacity and awareness challenges in adopting circular economy practices. At the same time, many communities remain unaware of the business and livelihood opportunities that the green transition presents. Public awareness and behavioral change are also essential to accelerate transition.

Through this Call for Proposals, the Embassy seeks to support two distinct but complimentary themes with one project grant each:

1. Strengthening SME Capacity for Circular Economy Transition

The first project focuses on accelerating the transition to a circular economy by strengthening the capacity of Kenyan SMEs across sectors to integrate circular practices into their operations. The aim is to promote more sustainable business models that generate entrepreneurship and employment opportunities, particularly for young people.

The objective is to provide integrated, practical, and comprehensive technical assistance to Kenyan SMEs — including those not currently operating within the circular economy — to enable and encourage the adoption of circular economy principles in their business models and operations.

 The project seeks to: 

1. Support SMEs in systematically integrating circular economy practices into their operations and value chains, with a focus on improving resource efficiency, minimizing waste, and adopting sustainable production and consumption models.
2. Enhance the profitability of participating SMEs by:
   • Improving operational efficiency through business development support and technical know-how
   • Building strategic partnerships
   • Strengthening marketing and innovation capacities
3. Facilitate SMEs access to finance and investment, including through targeted networking and visibility opportunities.
4. Support the growth and employment potential of SMEs embracing circular practices, with a focus on youth employment.
5. Contribute to Kenya’s broader climate and sustainability goals by advancing a more resource-efficient and inclusive economy.

Priority in this theme will be given to a project that advances partnerships between Kenyan and Finnish companies and/or institutions.

One service provider will be selected to receive funding to deliver business development services and technical assistance to SMEs. The available funding ranges from EUR 100,000 to 120,000, for an implementation period of 1 to 2 years.

2. Raising Public Awareness on Circular Economy and Climate-Smart Solutions for Community-Based Business and Job Creation

The Embassy is seeking creative, inclusive, and high-impact approaches to raising public awareness on circular economy and climate-smart solutions—especially those that can spark community-based entrepreneurship, skills development, and job creation.

We invite proposals that present new and effective ways of engaging communities, stakeholders, and the public at large in adopting circular and sustainable practices.

Specific objectives include:

• To develop and implement innovative and participatory public awareness campaigns that promote circular economy thinking and climate-smart solutions.
• To encourage uptake at the county level, particularly of practices that support local business opportunities, youth engagement, and sustainable livelihoods.

One project will be selected for funding. The funding will range between 90 000 – 100 000 EUR for a duration of 1-2 years.

 

Eligible actors

The fund supports initiatives of local Non-Governmental Organizations (NGOs), Civil Society Organizations, Foundations, Community Based Organizations (CBO) and private sector entities registered in Kenya. The organizations must abide by the relevant local legislations.

Eligibility criteria

The eligibility of applications will be assessed based on the following criteria:

• The applicant is legally registered in Kenya and complies with all relevant local registration requirements.
• The applicant is an organization eligible for Finnish Local Cooperation (FLC) funding.
• The organization has been operational for a minimum of three (3) years.
• The proposed project is aligned with Finland’s development policy priorities and the thematic focus areas outlined in this Call for Proposals.
• The application includes a clearly defined results framework, with project outcomes and targeted outputs supported by adequate indicators and baseline data.
• Project activities are realistic and well-planned, and they demonstrably contribute to the achievement of the intended outputs.
• The project budget is clear, detailed, and justified, and:
  • Supports the expected project outputs,
  • Includes unit costs and salary cost breakdowns,
  • Provides a cost breakdown per year if the project spans two calendar years, and
  • Includes a line for external audit costs.
• The application includes a separate results framework, and the proposed outputs, outcomes, and impact are:
  • Concrete,
  • Realistic, and
  • Logically linked to one another.
• The project applies a Human Rights-Based Approach and adheres to the cross-cutting objectives in Finland’s development policy.
• The application includes a comprehensive risk analysis and mitigation plan.
• The project description clearly outlines:
  • The approach and methods to be used,
  • How different social groups and interests will be taken into account, and
  • A sustainability plan beyond the project period.
• The applicant demonstrates relevant experience and management capacity in the proposed sector or thematic area.
• The applicant has a sound financial track record and sufficient human resources to successfully implement the project.

FLC funding cannot be granted for the following purposes:

• To government ministries, departments, or county administrations
• To unregistered associations or organizations
• To support the activities of political parties
• For charitable purposes, humanitarian aid, donations, scholarships, events, or in-kind contributions
• To Finnish beneficiaries or entities
• For basic academic research
• For construction activities, land purchases, or one-off and ad hoc events
• For use as capital investment or loans

Application process

The Call for Proposals opens on 16^th June 2025 and closes on 31^st July 2025 at 16:00 (local Kenyan time).

Interested applicants to submit their proposal by email to the Embassy of Finland ([email protected]) not later than the closing date – 31^st July at 16:00 Kenyan time. Applications submitted after the deadline will not be considered.

The applicants should use this format (press to download) Application format 2025. Private companies should fill in this form and attach to the proposal Private Company Application Form 2025. Special conditions for private companies’ projects: Provions for Private Sector Applications. 

Proposals must be submitted in PDF format and must not exceed 15 pages in length.

Enquiries

Any questions must be submitted to ([email protected]) by 4^th July 2025. Response to the questions will be published on the Embassy webpage by 11^th July 2025.

Evaluation of the proposals

The proposals will be evaluated within 2-3 months from the due date. Decisions to applicants, including both accepted and rejected will be sent by 30^th October 2025.