The National Treasury has secured a $126.8 million (Sh16.4 billion) concessional loan from the International Fund for Agricultural Development (IFAD), whose proceeds will finance a new programme aimed at improving rural livelihoods and protecting natural resources.
The loan is on blend terms with a 1.41 percent interest rate, 1.39 percent service charge, a 25-year repayment period, and a five-year grace period.
Treasury Cabinet Secretary John Mbadi signed the financing agreement for the Integrated Natural Resources Management Programme at Treasury Buildings on Monday, alongside IFAD Regional Director Sarah Mbago-Bhunu.
Mr Mbadi said the programme will address challenges of environmental degradation, climate change, and dwindling livelihoods in rural Kenya.
“This programme is not just about conserving the environment—it’s about securing the livelihoods of our rural communities, restoring their natural resources, and building resilience for future generations,” said Mr Mbadi.
The programme is set to be implemented in 10 of Kenya’s 47 counties, including Elgeyo Marakwet, West Pokot, Trans Nzoia, Uasin Gishu, Nandi, Kakamega, Kericho, Kisumu, Homa Bay, and Migori.
Treasury says the programme will focus on sustainable resource management, strengthening rural institutions, and improving household incomes through environmentally friendly livelihood activities.
“The deal adds to IFAD’s current portfolio in Kenya, which includes four ongoing projects supporting agriculture, aquaculture, livestock, and rural financial inclusion,” said the National Treasury in a statement.
The programme is estimated to directly benefit 407,176 vulnerable rural households, translating to around 2.04 million individuals.
The State Department for Environment and Climate Change had earlier, in March last year, projected that the programme would gobble up $250 million (Sh32.3 billion) in loan-funded financing from IFAD.
Since taking power in September 2022, President William Ruto has sought to profile himself as a climate crusader, actively promoting climate action both locally and on the international stage.
Among government-backed initiatives that the current administration has spearheaded include a much-publicised 10-year plan to grow 15 billion trees by 2032 as part of efforts geared towards carbon requisitioning and restoration of deforested areas.
Dr Ruto has also emerged as a vocal voice in calling out developed nations for their perceived inaction on climate change.
