Kenya has secured a $126.8 million (approximately Ksh.16.4 billion) concessional loan from the International Fund for Agricultural Development (IFAD) to finance a major environmental and rural development initiative.
Treasury Cabinet Secretary John Mbadi on Monday signed the loan agreement with IFAD Regional Director Sara Mbago-Bhunu. The funds will support the new Integrated Natural Resources Management Programme (INReMP), aimed at addressing environmental degradation, climate change, and declining rural livelihoods.
“This program will promote sustainable natural resource management, strengthen community institutions, and support environmentally friendly income-generating activities in rural Kenya,” the National Treasury said in a statement.
INReMP will be implemented in ten counties: Elgeyo Marakwet, West Pokot, Trans Nzoia, Uasin Gishu, Nandi, Kakamega, Kericho, Kisumu, Homa Bay, and Migori.
The loan is offered on blend terms, with a 1.41% interest rate, a 1.39% service charge, a five-year grace period, and a 25-year repayment window, making it among the more favorable financing arrangements available to developing nations.
IFAD, a specialized UN agency, focuses on reducing poverty and hunger in rural areas globally. The latest agreement expands IFAD’s active portfolio in Kenya, which already supports projects in agriculture, aquaculture, livestock, and rural finance.
The deal aligns with President William Ruto’s broader environmental agenda, which includes planting 15 billion trees, restoring over 5 million hectares of degraded land, and advocating for climate finance and equitable international partnerships. Since taking office in 2022, Ruto has positioned environmental conservation as a cornerstone of Kenya’s development strategy.
Written By Rodney Mbua
