The government has secured a Ksh16.484 billion ($126.8 million) loan from the International Fund for Agricultural Development (IFAD) for the Natural Resources Management Programme (INReMP), which aims to reinforce the country's environmental fitness.
The deal, which was signed by the Treasury Cabinet Secretary John Mbadi and IFAD Regional Director Sara Mbago-Bhunu on Monday, June 23, will have a 25-year repayment period, with a 1.41 per cent interest rate, a 1.39 per cent service charge, and a grace period of five years.
INReMP is set to be rolled out in Elgeyo Marakwet, West Pokot, Trans Nzoia, Uasin Gishu, Nandi, Kakamega, Kericho, Kisumu, Homa Bay, and Migori.
Speaking during the signing of the agreement, the Treasury Cabinet Secretary John Mbadi said that the funds will play a critical role in addressing some of the pressing climatic challenges the country is facing, such as environmental degradation and climate change, in addition to providing environmentally friendly activities in rural settings to improve livelihoods.
“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 CS Mbadi.
On the other hand, the Environment Cabinet Secretary, Deborah Barasa, who also witnessed the signing of the deal, asserted that the deal will be pivotal in boosting the existing climate-oriented projects in the country.
"Further, it will scale up the successful approaches under existing IFAD projects in Kenya, with a stronger emphasis on nature-based value chains and enterprises, while taking on a public-private partnership (4P) implementation approach," the ministry said.
"The Project has three main components: community-led enhanced environment and INRM, ecosystem services and climate action, improved, Inclusive, and sustainable rural livelihoods, and Institutional strengthening, policy support, and programme coordination," it added.
The agreement comes at a time when Kenya is searching for other financing options in a bid to stabilise the country's economic growth.
Just last week, reports emerged that the International Monetary Fund (IMF) has dispatched a team to scrutinise the impact of corruption on public finances in the country to pave the way for a new financial support agreement.
According to an IMF spokesperson, the 14-day study will be foundational in enabling the government to reinforce its anti-corruption capacity before it enters into a new funding deal with the lender.
"The review is part of the IMF’s commitment to helping strengthen governance and anti-corruption frameworks,” an IMF spokesperson told Bloomberg.
