Kenya Secures KSh16.4 Billion Loan to Advance Environmental Conservation

Kenya has secured a concessional loan of $126.8 million (approximately KSh16.4 billion) from the International Fund for Agricultural Development (IFAD) to enhance environmental conservation and support rural livelihoods.

This funding is intended to support the launch of Integrated Natural Resources Management Programme (INReMP), a multi-year initiative aimed at both ecological preservation and socio-economic development. The programme is designed to improve food security, nutrition, and income for rural households while fostering a sustainable and resilient ecosystem.

National Treasury Cabinet Secretary John Mbadi emphasized that INReMP is a strategic response to growing environmental challenges and rural vulnerabilities caused by climate change and resource over-exploitation.

“The programme will address environmental degradation, climate variability, and diminishing livelihoods, particularly in rural areas,” said Mbadi. “It will focus on sustainable natural resource management, strengthen local institutions, and promote green livelihood options.”

INReMP will be implemented in ten counties: Elgeyo Marakwet, West Pokot, Trans Nzoia, Uasin Gishu, Nandi, Kakamega, Kericho, Kisumu, Homa Bay, and Migori. These areas are among the most ecologically diverse and severely affected by climate change in the country.

The programme is specifically designed to benefit women, youth, and other vulnerable groups, ensuring inclusive access to economic opportunities and climate adaptation strategies. It will promote practices such as agroforestry, climate-smart agriculture, and sustainable water resource management to reverse environmental degradation while creating green jobs and enhancing household incomes.

INReMP is part of a broader shift towards community-driven natural resource governance, focusing on local ownership and capacity building.

Established in 1977, IFAD is a specialized United Nations agency and international financial institution dedicated to eliminating rural poverty and hunger in developing countries. It achieves this by investing in small-scale agriculture and community-based development, particularly in fragile ecosystems.

The $126.8 million loan to Kenya is offered under blended terms, with a 1.41% interest rate, a 1.39% service charge, a 25-year repayment period, and a five-year grace period. IFAD’s investment adds to its expanding portfolio in Kenya, which currently includes four ongoing projects in agriculture, aquaculture, livestock, and rural financial inclusion.

Globally, IFAD operates in over 130 countries and has reached more than 500 million people since its inception, with a strong focus on empowering smallholder farmers who contribute significantly to global food production through access to finance, markets, and climate-resilient technologies.

The loan and the INReMP programme align with President William Ruto’s environmental conservation agenda, a central focus of his administration since taking office in 2022. The government has initiated an ambitious campaign to plant 15 billion trees, restore 5.1 million hectares of deforested land, and actively engage in climate diplomacy to establish Kenya as a regional leader in sustainable development.

President Ruto has also advocated for mobilizing climate finance for Africa and called for more equitable partnerships between developing nations and the Global North, particularly in efforts to mitigate and adapt to climate change.

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